We list the most-recommended funds by the UK's top six investment platforms. It may be worth running the rule over them to see if they fit your strategyThere is one thing more useful than a recommendation from a trusted source – and that is getting the same suggestion from several.
Hot tips: We have teamed up with consultancy The Lang Cat to compile a list of the most-recommended funds by the UK's top six investment platforms RELATED ARTICLES Share this article Share 51 shares HOW THIS IS MONEY CAN HELP What are recommended funds?Investment platforms understand that narrowing down thousands of funds to just a few can be daunting. It can be difficult for investors to know where to start. So, to help make life easier for customers, most publish a list of their favourite funds that they are happy to recommend.
Interestingly, The Lang Cat research reveals that there is surprisingly little overlap between the lists. There are more than 300 funds that appear across the six lists. Of these, not a single one is on all six lists, only one is across five, five appear across four lists and just 15 funds are on three lists.
The fund invests in large companies based across Europe, the likes of Danish pharmaceutical firm Novo Nordisk and French Louis Vuitton and Moët owner LVMH. It also likes its 'style-agnostic' approach – it doesn't just focus on a single strategy, such as looking for companies that appear cheap or are currently out of favour. 'The manager's approach leads to a steadier return profile and to outperformance during periods of market weakness.'
Interactive Investor says the fund typically outperforms strongly during periods of market weakness, while keeping up in rising markets, too. It has yielded an income in a range of 3.1 and 3.3 per cent over the past three years. iShares Japan Equity Index Fund closely tracks the performance of the FTSE Japan Index – in other words an index of the biggest companies in Japan.
It adds: 'The managers believe the hardest economic advantages to copy are intellectual property, such as patents and trademarks, strong distribution channels and significant repeat business. That's why a company must have at least one of these attributes before it's considered for the fund.' The fund has turned £1,000 into £1,330 over five years, in comparison to its benchmark of other so-called specialist funds of £1,293.
But don't just buy the lot!Recommended funds should be treated as ideas to consider – inspiration rather than prescriptions. Were you to buy the lot, you would likely end up with a very skewed portfolio.