Most popular ISA funds, shares and investment trusts in 2021

Laith Khalaf
1 March 2021

•    Fund investors go for growth in their ISA
•    Baillie Gifford is proving popular with investors this ISA season
•    Lindsell Train out of the top 10 so far this year
•    Investors are split between value and growth on share purchases

Laith Khalaf, financial analyst at AJ Bell, comments:

“Fund investors have been going for growth in their ISA so far this year, filling their tax shelters with a raft of offerings from Baillie Gifford, and of course, the ubiquitous Fundsmith Equity. Rival growth fund Lindsell Train Global Equity looks to have declined in popularity this year, not making the top ten in January and February, after coming in second behind Fundsmith over the same period last year.

“That looks to be in large part to be down to the success of Baillie Gifford’s fund range, which account for half of the top ten most popular ISA funds so far this year. There’s still another month to go in ISA season though, and it remains to be seen whether the shift towards cyclical and value stocks we have seen in the market starts to manifest itself in ISA investments too.

“Certainly the individual shares picked by ISA investors in 2021 exhibit a cyclical flavour, with the likes of EasyJet, IAG, and BP all being stocks that will do well if there is a strong economic recovery. But ISA investors have also picked Tesla and Unilever, and while both have suffered a fall from grace in recent weeks, they are long term winners that have benefited from investors’ focus on future earnings growth. This split between growth and value stocks reflects a dichotomy of views in the market, on whether or not inflationary pressures are building, and perhaps promising a reversal of the trends we have seen in the market for the last decade.

“While the Gamestop frenzy has died down, for now at least, trading activity at the back end of January and early February means it’s still one of the most popular ISA share purchases of the year so far. Cryptocurrency miner Argo Blockchain has also proved popular so far this year, as the Bitcoin price has rallied, and naturally thrown a spotlight onto cryptoassets once again. 

“With just one month to go to fill their ISA allowances, and tax rises looking like they’re in the post, we can expect the usual rush to beat the 5th April deadline. Those who find themselves running out of time should remember they don’t have to make an investment decision before the 5th April, if they need a bit more thinking time. They can just make their ISA contribution and hold it as cash, pending an investment decision when they’ve got a bit more breathing space to consider the options.”

Funds

2020

2021

Fundsmith Equity

Fundsmith Equity

Lindsell Train Global Equity

Baillie Gifford American

Polar Capital Global Technology

Baillie Gifford Positive Change

Vanguard Lifestrategy funds

Baillie Gifford Global Discovery

Fidelity Global Special Situations

Fidelity Global Special Situations

Fidelity Index World

Fidelity Index World

BNY Mellon Global

Vanguard Lifestrategy funds

TB Evenlode Income

Baillie Gifford Pacific

Franklin Templeton  UK Mid Cap

Polar Capital Global Technology

Jupiter UK Special Situations

Baillie Gifford Global Alpha Growth

 

Shares

2020

2021

Lloyds

Argo Blockchain

Glaxosmithkline

GameStop

BT

Glaxosmithkline

Royal Dutch Shell

Rolls Royce

AJ Bell

International Consolidated Airlines

Novacyt

Unilever

Vodafone

BP

BP

Tesla

Aviva

Lloyds

Tesla

EasyJet

 

Investment trusts

2020

2021

Scottish IT

Scottish Mortgage IT

Scottish Mortgage IT

Scottish IT

City of London IT

Edinburgh Worldwide IT

F&C IT

Monks IT

Finsbury G&I IT

Pacific Horizon IT

Murray IT

Fidelity China Special Situations IT

Smithson IT

JP Morgan China G&I IT

Temple Bar IT

Allianz Technology IT

Monks IT

Smithson IT

Polar Capital Global Technology IT

JP Morgan Emerging Markets IT


Source: AJ Bell, data collected from ISAs between 01/01-29/02 for each year, excluding AJ Bell funds.

Laith Khalaf
Financial Analyst

Laith Khalaf started his career in 2001, after studying philosophy at Cambridge University. He’s worked in a variety of roles across pensions and investments, covering both the DIY and the advised sides of the business. In 2007, he began to focus on research and analysis, and has since become a leading industry commentator, as well as a regular contributor to the financial pages of the national press. He’s a frequent guest on TV and radio, and for several years provided daily business bulletins on LBC.

Contact details

Mobile: 07936 963 267
Email: laith.khalaf@ajbell.co.uk

Follow us: