Top performing funds for 2017 (so far)

If you’re thinking of investing your pension pot or other savings into high-performance funds, it helps to understand exactly what’s happening in the financial markets today. No doubt you’re looking for something you can buy and hold for the long run, and preferably leave well alone until your investment matures in 5, 10 or 15 years’ time.

We’re reviewing some of the top performing funds and options for 2017 so far, which will give you some insight into the choices available to you for investing your savings this year.

  1. Old Mutual UK Smaller Companies Focus: This fund invests in small companies spread across a range of industries, and has consistently performed well over previous years. The fund has so far returned 32.2 percent, which is around twice as much as the UK Smaller Companies sector average of 14.6 percent over the same period.

However, since the recent snap election, we are entering uncertain times for UK small companies, so it’s important to recognise the potential risk with this sort of investment. Interactive Investor rate this fund a 4 out of 5 for risk, so if you do consider investing, you’ll need to keep a close eye on the small business sector to ensure your money is safe.

  1. Baillie Gifford Greater China: Emerging markets, and in particular Asia, have been performing well over the start of this year. One such fund, Baillie Gifford Greater China, has returned 29.1 percent, making it another top performing fund for 2017.

This fund invests in companies who are either in China or conduct a good deal of their business there. They may also invest in Taiwan or Hong Kong and are rated a 5 out of 5 for risk, so do be wary of sinking too much money into this stream.

  1. Rowe Price Global Technology Equity: The technology sector in general is posting good returns to investors right now, and T. Rowe have posted the best of all. Their performance returned 27.9 percent so far in 2017, followed closely by another tech stream, Polar Capital Global Technology who posted 21.7 percent.

This fund is a lower risk than the emerging market fund above, but even so, it’s important to be aware that some tech investments will have higher risk and lower return than others. Their risk level is sitting at around 3 out of 5, and with a low mid-price, you could get a lot for your money from this investment.

  1. Old Mutual UK Alpha: This fund has a strong success record over the long term, and despite a hiccup or two last year, it’s a relatively reliable stream. Over the last 12 months, it’s delivered an annualised return of 7 percent, higher than the rest of the sector by around 1.7 percent.

Because it invests in larger companies, it tends to be less volatile than some of the funds which rely on smaller or more up and down businesses. Despite this, they still get a 4 out of 5 rating for risk, so your investment will need to be monitored fairly carefully.

  1. Royal London UK Equity Income: Our final pick for high-performance funds is the £1.7bn equity income fund run by Royal London. Being in place for more than 30 years, this fund has stood the test of time and has historically returned a consistent 3.6 percent, making it a comfortable long-term investment choice.

Managed by Martin Cholwill, this pure equity fund invests in high yielding stocks based in the UK, emphasising company cashflow to establish how affordable the dividends are. It outperforms the UK Equity Income sector consistently and is a lower risk than most, currently rated at just 2 out of 5.

As much as some of the statistics and returns cited in this article sound highly tempting, it’s important to understand that you could just as easily lose money as you could make it. For this reason, it’s important to look at the long-term picture, and how risky these funds might be. When it comes to something as important to you as your pension pot, it’s essential to take professional financial advice, so talk to us today for more insight and support in making the right decision.