At this point, though, investors really do need to get their act together: 5 April marks the very end of the tax year, meaning that those have not already invested have little more than a week to use up their tax-free allowance."In the last two tax years, 14 per cent of all new ISAs opened on our platform were opened in the last week. Make sure you take out your ISA, as once the tax year ends, you have lost that allowance," said Hargreaves Lansdown's Adrian Lowcock.
"To take out an ISA, all you need is your national insurance number, debit card and cleared funds in the bank."
With this in mind, Lowcock highlights funds for different investment horizons and strategies.
Invesco Perpetual Distribution
With its diversified income strategy, Lowcock says the five crown-rated Invesco Perpetual Distribution fund is one of the best choices for yield-hunting investors.
"This fund aims to provide a regular, stable income. It invests in a mix of bonds and income-producing equities. Approximately two-thirds of AUM is invested in corporate bonds with the remainder invested in equities. Income is its primary aim and it makes payments to investors monthly," Lowcock said.
The £2bn Invesco Perpetual Distribution fund has a yield of 5.13 per cent and is run by the highly experienced trio of Paul Causer, Paul Read and FE Alpha Manager Neil Woodford – who between them have more than 60 years of practice running funds in the IMA universe.
The fund is top quartile in the IMA Mixed Investment 20%-60% Shares sector over one, three and five years. It is the second best-performing fund in the sector over the last half a decade, with returns of 55.68 per cent.
Performance of fund vs sector over 5yrs
Source: FE Analytics
This has come at the expense of higher volatility, however.
Invesco Perpetual Distribution requires a minimum investment of £500 and has an ongoing charges fee (OCF) of 1.56 per cent.
Newton Real Return
Lowcock thinks that Newton Real Return is a good option for the more defensively minded investor.
"This fund is for investors who may need access to some of their capital in the medium-term – but still in at least five years' time," he said. "It therefore tries to offer some sheltering of capital and aims for more modest growth. The manager invests in a variety of assets and uses sophisticated techniques to try to profit from assets which fall in value."
The £7.5bn Newton Real Return fund is run by FE Alpha Manager Iain Stewart, who has held the title ever since the rating's inception five years ago.
The fund is the best performer in the IMA Absolute Return sector over the past 10 years, with returns of 185.64 per cent.
It has made money in each of these years except for 2011, when it lost 0.75 per cent.
It posted returns of 3.98 per cent in the crash year of 2008.
As well as a high exposure to both equities and fixed income assets, the portfolio employs options on the S&P 500 and FTSE 100 indices.
Newton Real Return requires a minimum investment of £1,000 and has an OCF of 1.61 per cent.
Trojan
Lowcock says Trojan is suitable for investors who are willing to take a little more risk, but still want that downside protection.
"This fund is defensively managed and has the potential to achieve a reasonable level of return over the medium-term with a little less volatility than the very long-term, more aggressive portfolios," Lowcock said.
The five crown-rated Trojan fund, headed up by Sebastian Lyon, has made 57.5 per cent over the last five years, making it the third highest-ranking portfolio in the IMA Flexible Investment sector.
It has also beaten its benchmark – the FTSE All Share – by nearly 20 percentage points over this time.
Performance of fund vs sector and index over 5yrs
Source: FE Analytics
It is top quartile over three years. However, due to Lyon’s bearish view on the markets it has not taken full advantage of the recent equity rally.
The £2bn fund is defensively positioned, with 38 per cent in equities, 36 per cent in bonds, 16 per cent in cash and 10 per cent in gold.
Trojan has a total expense ratio (TER) of 1.03 per cent and although it is soft closed, it can be accessed via a number of platforms.
CF JM Finn Global Opportunities
Lowcock likes CF JM Finn Global Opportunities for investors seeking out-and-out growth.
"This suggestion is for investors with a long time horizon. Therefore the focus is on more risky areas with greater potential to build wealth over the long-term," he said.
The five crown-rated CF Finn Global Opportunities fund has been managed by FE Alpha Manager Anthony Eaton since October 2005.
It was launched a year prior to that and over this time it has returned 163.26 per cent, nearly doubling the returns of the IMA Global sector – which also happens to be its benchmark.
However, it has tended to underperform in recent years.
The fund aims to profit from the emerging market growth story by holding companies that are listed in more developed economies but operate or export to the emerging markets.
It requires a minimum investment of £1,000 and has a TER of 1.66 per cent.
Lindsell Train Global Equity
For investors who are looking for a fund to hold in a Junior ISA or for their children's future, Lowock recommends FE Alpha Manager Nick Train’s Lindsell Train Global Equity.
"The managers invest in global equities and have a long-term buy-and-hold approach. This complements those investing for children who often have very long-term goals in mind."
As a recent FE Trustnet article highlighted, Lindsell Train Global Equity is one of the highest-conviction portfolios available to retail investors, with just 27 holdings and a very low turnover rate.
So far the approach has worked for the fund: it has returned 38.91 per cent since its launch in March 2011, beating the MSCI World index by 12.24 per cent.
The fund requires a minimum investment of £1,500 and has an OCF of 1.45 per cent.