Fund Spotlight: seven funds for gift-giving that actually lasts

If you’re looking to give a gift that lasts longer than chocolates or socks, why not surprise your family with a fund idea that suits their personality?

The ii Research Team have matched different types of funds to the characters we all have in our families: from the adventurous kid who loves a thrill, to the bargain hunter, the gold fan, the eco-warrior, and the one who just wants everything calm and steady.

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For a thrill-seeking kid: UK Smaller Companies  

Got a young adventurer who’s always chasing the next big excitement? Smaller companies’ funds are the investment equivalent of a roller coaster - full of potential twists, turns, and exciting growth opportunities. These funds focus on up-and-coming businesses that could one day be the next big thing, but they can be bumpy along the way. Perfect for someone with time on their side and a taste for a little risk and reward.

Fund to consider: Gresham House UK Smaller Companies fund

Managed by the experienced manager Ken Wotton, WS Gresham House UK Smaller Coms C Acc is a concentrated portfolio of 40 to 50 UK-listed smaller companies, typically with market capitalisations between £250 million and £1 billion. A large part of the portfolio sits at the smallest end of the market, with more than one-third in AIM-listed firms and around a quarter in FTSE Small Cap names.

The managers use a bottom-up process targeting high-quality businesses with strong margins, steady earnings growth, solid cash generation and low debt. A key differentiator is the fund’s private equity style due diligence and engagement, supported by Gresham House’s specialist network.

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For someone who loves a bargain: Global Value Equities

If you know someone who can’t resist a good sale, they’ll appreciate the idea behind value investing. These funds hunt for solid companies that are temporarily “out of favour” or trading below what analysts think they are worth. It’s about snapping up quality at a discount and waiting for the market to recognise the true value.

Fund to consider: Dodge & Cox Worldwide Global Stock Fund

Dodge & Cox Worldwide Global Stk GBP Accinvests in shares of companies around the world that the team believes are good businesses temporarily priced too cheaply. The approach relies on bottom-up, fundamental research of companies and industries. Their analysts look for firms with strong competitive positions, solid long-term growth potential, and capable management.

The managers are patient and are willing to invest when markets are unsettled or when a company is out of favour. The fund is not tied closely to an index, so it can look quite different from the global market. It often has meaningful exposure outside the US and some links to emerging markets.

For the steady earner: Global Equity Income

Every family has someone who appreciates a reliable return without too much fuss. Global equity income funds invest in dividend-paying companies from around the world, offering the potential for a growing income stream alongside long-term capital growth. These funds often lean towards financially robust, well-managed businesses making them a great match for anyone who loves the idea of steady earnings but still wants exposure to global markets.

Fund to consider: Fidelity Global Dividend Fund

Fidelity Global Dividend W Acchas been managed by Dan Roberts since its 2012 launch, drawing on more than two decades of dividend-investing experience.It invests in companies globally that offer a healthy dividend yield and the potential for capital growth and aims to generate roughly 25% more income than its benchmark.

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Companies that demonstrate pricing power and robust balance sheets are favoured and those holding large amounts of debt are avoided. The portfolio holds around 46 large, resilient companies, with Europe representing roughly 48%, North America 26% and the UK 15%, and no Chinese exposure. Sector allocations are deliberately defensive, led by Financials, Industrials and Consumer Staples.

For those hoping to be gifted gold: Gold and Commodities

Have a family member who loves a bit of sparkle? Gold funds or exchange-traded funds (ETFs) tap into the timeless appeal of this precious metal by investing in physical gold. They often shine brightest when markets are rocky, making them a unique and glittering gift idea.

Fund to consider: iShares Physical Gold ETC

This exchange-traded commodity (ETC) provides direct exposure to spot gold prices and is backed by physical gold holdings. iShares Physical Gold ETC GBP (LSE:SGLN) tracks the LBMA gold price and has a competitive yearly ongoing charge of 0.12%.

Gold prices are near historic highs, having set an all-time high reached in October 2025. With that said, in times of equity market stress, the metal tends to return to providing some downside protection - as seen in 2022 and again in early 2025, when gold continued to rise despite falling stock markets.

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And if you’d prefer something a little more diversified, a commodities basket fund offers exposure not just to gold but also to other raw materials such as energy and industrial metals - perfect for someone who wants broader commodity themes wrapped up in one package.

Fund to consider: WisdomTree Enhanced Commodity ETF

The WisdomTree Enhanced Cmdty ETF - USD Acc GBP (LSE:WCOB) provides broad commodity exposure, using a flexible weighting approach across sectors. It has an enhanced roll mechanism in place, aiming to maximise returns, reduce volatility and minimise costs via more efficient selection of futures contracts. The ETF has roughly 19% held in gold and near 26% in precious metals more broadly, with agricultural commodities comprising over one-third of the portfolio and energy nearly 28%. The ETF is available for a yearly charge of 0.35%.

For the eco-friendly gift-seeker: Sustainable Bonds

For your green-hearted relation, a sustainable bond fund could be a great fit. These funds avoid investing in activities that make the planet or its inhabitants worse off and actively support those projects that are doing good in the world.

Fund to consider: Rathbone Ethical Bond Fund

One of the UK’s longest-standing ethical bond funds, Rathbone Ethical Bond Fund I Acc aims to provide a regular, above average income by investing in a range of bonds with strict ethical criteria. It takes a defensive approach, investing at least 80% in sterling-denominated investment grade bonds (rated AAA to BBB-), and up to 10% in non-rated bonds. This focus aims to reduce default risk while maintaining income potential. The fund is led by Bryn Jones, an experienced manager of nearly two decades. Its holdings span corporates, charities, the UK government and supranational organisations.

For those seeking stability: Capital Preservation Strategy

Know someone who prefers calm seas to stormy waters? Absolute return or capital preservation funds aim to deliver steadier, smoother performance, even when markets get jittery. They use a mix of strategies to limit volatility and help protect against big downturns. Ideal for the relative who values peace of mind and predictable progress over adrenaline-fuelled swings.

Fund to consider:Trojan Fund

Managed by Sebastian Lyon, Trojan Fund X Accumulation takes a conservative, disciplined approach focused on preserving capital and delivering long-term real returns. The manager allocates across a broad range of asset classes, favouring high-quality, resilient investments. The equity portion is focused on large, financially robust companies in developed markets, particularly the UK and US.

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Beyond equities, the fund holds high-quality sovereign and inflation-linked bonds as defensive assets, alongside a strategic allocation to gold. Cash is also used meaningfully to protect capital and allow swift investment when opportunities arise. The fund offers a steady, defensive option for investors seeking long-term real returns with controlled risk.

Source: Morningstar Total Retuns for Funds/Market Returns for ETF (GBP) to 30/11/2025. Past performance is not a guide to future performance.