The only stock ISA you'll ever need

Finding a home for your tax-free allowance before Friday's deadline can be a nightmare. Emma Dunkley asked experts to nominate one core fund

Looming deadlines can often cause panic, but when it comes to your ISA allowance and the endless investments on offer, it's hardly surprising if you're overwhelmed by choice.

But with the ISA deadline at midnight on Friday, there's still time to make a considered judgement on where to invest, rather than just leaving it in cash earning very little interest.

And it's worth taking heed of the deadline in order to maximise the amount of hard-earned money you protect from the tax-man, rather than watch it swiftly and needlessly being taken away from you.

So where should you lock away your cash and put it to work? To make it simpler, we asked the experts to nominate the one core fund you'll ever need, where you can invest your money, sit tight for years and watch it grow.

Although you should, ultimately, look to spread your money, these are stalwart funds you could look to buy before the deadline, in the view you can build up other investments around them later.

With up to £11,280 to invest in a stocks and shares ISA, the experts reveal their top fund picks.

Rathbone Global Opportunities

Tipped by a few experts, this fund is a great choice for the long term. Its manager, James Thomson, has delivered a solid performance over a number of years. Mr Thomson has a flexible approach and aims to invest in tomorrow's success stories . Rather than focus on the UK, he has the flexibility to buy companies in terms of size, type and geography, although he chooses only between 40 and 60 of the best stocks. He looks for undiscovered growth stories and those companies that show a "star quality" other investors have yet to discover.

But he is also careful about risk. "He won't own companies that don't have any profits right now, because these companies get the rug pulled from underneath them in an economic crisis," says Rob Burdett at F&C Investments. "He also has no direct exposure to the emerging markets at the moment – which is good, because they're lagging behind.

"He prefers the strong governance and controls of developed-market companies that can access the growth of the emerging countries, but without being based there."

Since taking on the fund in 2003, Mr Thomson has returned a whopping 193 per cent. "He's a genuinely good custodian of your money," Mr Burdett adds.

Troy Trojan

"If you're starting up and looking to build a diversified portfolio, then a great fund to buy and hold, and treat as your core investment, is the Troy Trojan fund," says Adrian Lowcock of Hargreaves Lansdown.

The fund, managed by the respected Sebastian Lyon, puts your money to work in a range of different investments, including equities, gold, index-linked bonds as well as cash, meaning it's inherently diversified.

"He buys large, growth companies, where there is repeat demand, driven by habit or necessity," says Mr Lowcock. "He also buys bonds and gold to help protect you against inflation and he has the flexibility to invest defensively during the tough times. This is a fund that can grow and effectively work in all environments."

Although Mr Lowcock says the fund is not going to "shoot the lights out" and be the best performer if markets suddenly soar, it will likely still do well and can, importantly, protect you when markets are falling.

"The fund can withstand the peaks and troughs – so you're not going to get the best of a bull market, but it can shelter you when markets are going down, to smooth out performance over the long term," he adds.

M&G Global Dividend

"If you're looking for one main fund, it really can't just be UK-based," says Darius McDermott, the managing director at Chelsea Financial Services. "You want to spread out your money – and your currency exposure – globally."

Mr McDermott proposes the M&G Global Dividend fund managed by Stuart Rhodes. "This fund has an income, which if reinvested can compound over time and significantly boost your overall returns," he says.

The fund aims to deliver a dividend that is higher than the average, investing around the globe.

In order to perform well in both the good economic times and the bad, Mr Rhodes selects stocks with different dividend-paying characteristics. He also looks for companies with at least 10 years of dividend growth.

"So because it's a global fund, it offers a mix of currencies and companies and an investment process that targets total return," Mr McDermott says. "The fund is reaching its fifth anniversary and it's been a roaring success, because of the manager and his passion for the investment process."

BNY Mellon Long-Term Global Equity

While many people believe the economic balance of power is shifting from the old developed markets such as the UK, Europe and America to the new emerging markets of Asia and Latin America, it is still important to keep some of your money in the developed world, says James Bateman, a fund of funds manager at Fidelity.

"Global equity funds allow you to access a number of developed markets, as well as having a limited exposure to the emerging markets, in one solution," he says. "The BNY Mellon Long Term Global Equity fund is one that particularly stands out."

The fund is invested in 40 to 60 of the management's best picks and is focused on achieving solid, long-term returns, says Mr Bateman. "The investment process is driven by detailed research on companies, looking for those that can sustain and grow their profits, have solid market and competitive positions, strong financials, low debt and high rates of wealth generation."

It's also ideal for the long term, as the managers look to invest for extended periods.

Baring Asean Frontiers

For those looking to take on a bit more risk and happy to invest for 10 years or more – with the stomach for a few ups and downs along the way – the Baring Asean Frontiers fund offers an exciting growth story.

David Coombs, a fund of funds manager at Rathbone Unit Trust Management, says the Association of Southeast Asian Nations (Asean) is similar to the EU but without a single currency – and it is opening up for more business.

"There are several well-documented growth drivers … but the most compelling is the agreement that will be in place in 2015, to allow goods to travel freely, cross-border," says Mr Coombs.

The fund, which invests in between 60 and 80 stocks, is managed by Soo Hai Lim and his team, based in the area.

"Asean demonstrates the potential for strong economic growth over the coming years, with much room for the investment theme to proliferate," Mr Coombs says.

Emma Dunkley is a reporter at

Alexis Sanchez has completed a £35m move to Arsenal, the club have confirmed
sportGunners complete £35m signing of Barcelona forward
Poor teachers should be fearful of not getting pay rises or losing their job if they fail to perform, Steve Fairclough, headteacher of Abbotsholme School, suggested
voicesChris Sloggett explains why it has become an impossible career path
world cup 2014
Popes current and former won't be watching the football together
Arts and Entertainment
Celebrated children’s author Allan Ahlberg, best known for Each Peach Pear Plum
Wayne’s estate faces a claim for alleged copyright breaches
newsJohn Wayne's heirs duke it out with university over use of the late film star's nickname
Life and Style
It beggars belief: the homeless and hungry are weary, tortured, ghosts of people – with bodies contorted by imperceptible pain
lifeRough sleepers exist in every city. Hear the stories of those whose luck has run out
peopleIndian actress known as the 'Grand Old Lady of Bollywood' was 102
Arts and Entertainment
In a minor key: Keira Knightley in the lightweight 'Begin Again'
Mick Jagger performing at Glastonbury
Arts and Entertainment
Currently there is nothing to prevent all-male or all-female couples from competing against mixed sex partners at any of the country’s ballroom dancing events
Potential ban on same-sex partners in ballroom dancing competitions amounts to 'illegal discrimination'
Germany's Andre Greipel crosses the finish line to win the sixth stage of the Tour de France cycling race over 194 kilometers (120.5 miles) with start in Arras and finish in Reims, France
tour de franceGerman champion achieves sixth Tour stage win in Reims
Life and Style
beautyBelgian fan lands L'Oreal campaign after being spotted at World Cup
Finacial products from our partners
Property search
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Business Analyst Consultant (Financial Services)

    £60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...

    Systems Administrator - Linux / Unix / Windows / TCP/IP / SAN

    £60000 per annum: Harrington Starr: A leading provider in investment managemen...

    AVS, JVS Openlink Endur Developer

    £600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...

    Technical Support Analyst (C++, Windows, Linux, Perl, Graduate)

    £30000 per annum: Harrington Starr: A global leader in trading platforms and e...

    Day In a Page

    A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

    A History of the First World War in 100 Moments

    Peace without magnanimity - the summit in a railway siding that ended the fighting
    Scottish independence: How the Commonwealth Games could swing the vote

    Scottish independence: How the Commonwealth Games could swing the vote

    In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
    Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

    A writer spends a night on the streets

    Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
    Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

    UK's railways are entering a new golden age

    New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
    Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

    Conchita becomes a 'bride' on Paris catwalk

    Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
    Pétanque World Championship in Marseilles hit by

    Pétanque 'world cup' hit by death threats

    This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
    10 best women's sunglasses

    In the shade: 10 best women's sunglasses

    From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
    Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

    World Cup final: Messi? Mascherano is key for Argentina...

    No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
    Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

    Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

    18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
    The true Gaza back-story that the Israelis aren’t telling this week

    The true Gaza back-story that the Israelis aren’t telling this week

    A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
    A History of the First World War in 100 Moments: The German people demand an end to the fighting

    A History of the First World War in 100 Moments

    The German people demand an end to the fighting
    New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

    New play reveals what Oscar Wilde said at trials

    For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
    Can scientists save the world's sea life from

    Can scientists save our sea life?

    By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
    Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

    Richard III review

    Martin Freeman’s psychotic monarch is big on mockery but wanting in malice
    Hollywood targets Asian audiences as US films enjoy record-breaking run at Chinese box office

    Hollywood targets Asian audiences

    The world's second biggest movie market is fast becoming the Hollywood studios' most crucial