6 funds I’d invest in for 2020 and beyond

Looking for funds to invest in for 2020? Here’s a selection of top UK equity and global equity funds to consider.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

If you prefer to invest in actively managed funds, as opposed to picking stocks yourself, you have no shortage of options these days. On platforms such as Hargreaves Lansdown, there are literally hundreds of funds to choose from.

That said, it’s important to do your research when choosing a fund for your portfolio. Some funds have performed far better than others (and let’s not talk about the Neil Woodford debacle). With that in mind, here’s a look at six funds I’d be happy to invest in for 2020 and beyond.

UK equities

If you’re looking for a UK equity fund that has the potential to deliver a nice mix of capital gains and income, take a look at the TB Evenlode Income fund. What I like about this particular fund is that the portfolio managers focus on high-quality UK businesses. Top holdings currently include the likes of Unilever, Relx, and Sage. The performance of this fund has been excellent in recent years – over one year, it’s delivered a return of about 26% while over five years, it’s returned over 80%. Fees through Hargreaves are 0.9% per year (plus platform fees).

Another investment fund I like in the UK equities space is the Franklin UK Rising Dividends fund. Like the Evenlode fund, this fund has the potential to deliver both capital gains and income. Top holdings currently include Unilever, Shell, and Diageo. Performance here has been very good for a dividend-focused fund – over one year the fund is up about 25% while over five it’s up approximately 58%. Fees are low through Hargreaves at just 0.55% per year.

Finally, if you’re more of a growth investor, you might be interested in the CFP SDL UK Buffettology fund. This is a top-performing fund that, as its name suggests, invests with a Warren Buffett-like approach. It also has quite a strong focus on smaller high-growth companies. Top holdings currently include Games Workshop, AB Dynamics, and Dart Group. Over the last year, this fund has returned about 27% while over five, it has returned an excellent 127%. Fees are 1.19% per year through Hargreaves.

Global equities

For exposure to global equities, it’s hard to look past the Fundsmith Equity fund. Between its inception in late 2010 and the end of November this year, Fundsmith delivered a return of 363%, outperforming its benchmark by a huge margin. Top holdings here include the likes of Microsoft, PayPal, and Facebook, meaning you’re getting exposure to some exciting high-growth companies. Just be aware that Fundsmith is quite concentrated, which adds risk. Fees are 0.95% per year through Hargreaves.

Another top option for global equities is the Lindsell Train Global Equity fund. Like Fundsmith, this fund has delivered fantastic returns over the years (five-year return of around 150%) but is also quite concentrated. Top holdings here include Unilever, Diageo, and Heineken and fees are a very reasonable 0.55% per year through Hargreaves.

Finally, check out the relatively new global equity fund Blue Whale Growth. Since its launch in September 2017, it has performed exceptionally well, delivering a gain of 43% to the end of November versus 19% for the Investment Association’s global sector average (placing it second out of 284 funds). Top holdings include Microsoft, Adobe, and Autodesk, and fees are 0.89% per year through Hargreaves.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon owns shares in Hargreaves Lansdown, Unilever, Diageo, Royal Dutch Shell, Sage, and Microsoft and has positions in the Fundsmith Equity fund, Lindsell Train Global Equity fund, the Franklin UK Rising Dividends fund, the Blue Whale Growth fund, and the Lindsell Train Global Equity fund. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool UK owns shares of and has recommended Facebook, Microsoft, PayPal Holdings, and Unilever. The Motley Fool UK has recommended AB Dynamics, Diageo, Hargreaves Lansdown, RELX, and Sage Group and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2020 $97 calls on PayPal Holdings, and short January 2021 $115 calls on Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

2 industry-leading value stocks investors should consider buying

These value stocks are at the top of their respective industries, and look like current bargains with the potential to…

Read more »

Black father and two young daughters dancing at home
Investing Articles

Just released: our 3 top small-cap stocks to buy before August [PREMIUM PICKS]

Small-cap shares tend to be more volatile than larger companies, so we suggest investors should look to build up a…

Read more »

Investing Articles

If I’d put £5k in a FTSE 100 index fund 10 years ago, here’s what I’d have now!

Charlie Carman explores the performance of the FTSE 100 index over the past decade and the merits of passive versus…

Read more »

Investing Articles

£15K stashed away? I could turn that into a second income worth £49 a day!

This Fool explains how she would look to gain a second income through investing in UK stocks, and the steps…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

With the Apple share price near an all-time high, would I be crazy to buy more?

After touching all-time highs yesterday, the Apple share price is on a roll. But is there still enough growth ahead…

Read more »

Investing Articles

Nvidia stock has fallen 13% from its 52-week high! What next?

Our writer explains why Nvidia stock has dipped recently and highlights some risks associated with investing in the AI leader…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

The AstraZeneca share price is up 88% in 5 years, but is it just getting started?

The AstraZeneca share price has had a great few years, as acquisitions and clinical trials delighted shareholders. So is there…

Read more »

Investing Articles

Here’s why I’m watching the Anglo American share price

The mining sector has always interested investors. But after a flat few years, I'm wondering what's next for the Anglo…

Read more »