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Get the latest insights and ideas on choosing funds for your portfolio.

Latest funds news and insights

How Baillie Gifford American became a star fund

Baillie Gifford American Fund is one of the most popular on the interactive investor platform, and its stunning performance helps explain why. We talk to portfolio manager Dave Bujnowski about why it’s done so well, recent stock trades and whether he thinks the US tech sector is overheating.

Funds Fan: dividends, value investing and star managers

Small-cap tips: how to invest during a recession.

Fund, investment trust and ETF data. See the latest »

17 hours ago

Richard Buxton’s Jupiter UK Growth trust to be wound up

Star manager unable to improve performance in a challenging period for markets.

by Hannah Smith

Most popular funds

Rank Fund IA sector Ranking since previous month
1 Fundsmith Equity Global No change
2 Baillie Gifford American  North America No change
3 Baillie Gifford Positive Change  Global No change
4 Vanguard LifeStrategy 80% Equity Mixed investment 40%-85% shares Up two places 
5 Baillie Gifford Global Discovery Global Down one place 
6 Baillie Gifford Long-Term Global Growth Global Down one place 
7 Vanguard LifeStrategy 60% Equity Mixed investment 40%-85% shares Down one place 
8 Baillie Gifford Managed  Mixed investment 40%-85% shares No change
9 Rathbone Global Opportunities Global New entry 
10 L&G Global Technology Index  Technology and Telecommunications New entry 

 

Rank Fund IA sector Ranking since previous month
1 Fundsmith Equity Global No change
2 Baillie Gifford American  North America No change
3 Baillie Gifford Positive Change  Global Up one place
4 Baillie Gifford Global Discovery  Global Up one place 
5 Baillie Gifford Long Term Global Growth  Global Up five places 
6 Vanguard LifeStrategy 80% Equity Mixed investment 40%-85% shares Down three places 
7 Baillie Gifford China  China New entry
8 Baillie Gifford Managed  Mixed investment 40%-85% shares New entry
9 Vanguard LifeStrategy 60% Equity Mixed investment 40%-85% shares Down three places 
10 Polar Capital Global Technology  Technology and Telecommunications Down one place 

 

Rank Fund IA sector  Ranking change since previous month
1 Fundsmith Equity  Global No change
2 Baillie Gifford American  North America  No change 
3 Vanguard LifeStrategy 80% Equity  Mixed Investment 40%-85% Shares  No change 
4 Baillie Gifford Positive Change   Global  Up five places 
5 Baillie Gifford Global Discovery  Global  Down one place 
6 Vanguard LifeStrategy 60% Equity  Mixed Investment 40%-85% Shares Up one place  
7 Lindsell Train Global Equity  Global  Up one place  
8 L&G Global Technology Index  Technology & Telecommunications Down three places 
9 Polar Capital Global Technology  Technology & Telecommunications Down three places 
10 Baillie Gifford Long Term Global Growth   Global  New entry 

 

Fund IA sector  Ranking change since previous month
Fundsmith Equity  Global No change
Baillie Gifford American  North America  Up three places 
Vanguard LifeStrategy 80% Equity  Mixed Investment 40%-85% Shares  Down one place 
Baillie Gifford Global Discovery  Global  Up six places 
L&G Global Technolohy Index Technology & Telecommunications Up two places 
Polar Capital Global Technology  Technology & Telecommunications Up three places 
Vanguard LifeStrategy 60% Equity  Mixed Investment 40%-85% Shares  Down three places 
Lindsell Train Global Equity  Global  Down five places 
Baillie Gifford Positive Change   Global New entry 
Vanguard LifeStrategy 100% Equity  Global  Down four places 

 

Rank Fund IA sector  Ranking change since previous month
1 Fundsmith Equity  Global No change
2 Vanguard LifeStrategy 80% Equity Mixed Investment 40%-85% Shares  No change 
3 Lindsell Train Global Equity  Global  Up three places 
4 Vanguard LifeStrategy 60% Equity Mixed Investment 40%-85% Shares  No change 
5 Ballie Gifford American North America  New entry 
6 Vanguard LifeStrategy 100% Equity Global  Down three places 
7 L&G Global Technology Index  Technology & Telecommunications New entry 
8 Vanguard US Equity Index  North America  New entry 
9 Polar Capital Global Technology Technology & Telecommunications New entry 
10 Baillie Gifford Global Discovery Global  New entry 

 

Fund Recommendations

Super 60

ii Super 60

Discover a range of quality investment options for your portfolio. We’ve done the research so you don’t have to.
 

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ethical investments

Ethical funds:
ii ACE 30

The UK’s first rated list of ethical investments - to help you invest in line with your personal values.

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top investments

Top performing funds

View the latest top performers for ii customers.

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Helping you choose funds for your portfolio

With thousands of funds to choose from, it is easy to become overwhelmed. To help, our impartial experts have selected ideas for a wide range of active and passive funds, investment trusts, and exchange-traded funds (ETFs). 

The ii Super 60 selections are designed to suit all investors, while our ACE 30 list highlights the best-in-class ethical options.

Check out how each choice attained ii rated status by reading our methodology and FAQs. 

For a snapshot of the best-performing funds over various timeframes check out our top performing fund tables.  Top Performing Funds →

 

Why choose interactive investor to buy funds?

✔  We offer the widest choice – more than 40,000 UK & global investment options, including over 3,000 funds.

✔  We charge a low, flat fee of £9.99 per month. Most other investment platforms charge a percentage fee that grows with your investments.

✔  The £9.99 monthly fee includes our Stocks & Shares ISATrading Account and Junior ISA (add a SIPP for £10 a month).

✔  We give you a free trade every month. There are also no trading fees with our regular investing service.

open an investment account

New to interactive investor?

Open an investment account to invest in funds. It takes less than 10 minutes to get started.

Already an ii customer?

Log in to use our funds selector tool to find your next fund. There's over 3,000 to choose from.

Funds FAQs

A fund is a type of pooled investment, which gives investors access to a spread of companies. They are structured as either unit trusts or open-ended investment companies (OEICs), but in practice there is little difference between the two as far as private investors are concerned. A full explanation, though, can be found on our OEICS page.  

With funds, there are two investment styles: actively managed funds (in which the choice of companies is made by a professional fund manager) and passively managed funds (which invest in the constituents of a stock market index and therefore follow its fortunes up and down). 

Each investor in a fund receives shares or units, which represent a portion of the holdings of the fund.

Active funds
An actively managed investment fund has an individual fund manager (or a team of managers) who make investment decisions for the fund. Investors who buy active funds hope the fund manager(s) will outperform rival active funds and a comparable stock market index.  

Passive funds
Passive funds, also known as index trackers, tracks the up and down movements of a stock market index (such as the FTSE 100) - or a filtered version of it. No active decisions are made – instead the composition of the index is mirrored by the fund. Therefore, investors should expect the return of the fund to be close to the performance of the index, but with a slight lag due to the fund charge. As well as index trackers, passive funds can also be structured as exchange-traded funds (ETFs). 

Broadly speaking funds can be divided according to whether they invest in equities, bonds or property. In addition, there are more specialist funds: some invest in alternative assets (such as infrastructure) and others in commodities (such as gold and oil). There are also multi-asset funds, which invest in a mixture of assets. 

Funds either invest globally or on a regional basis in a developed market (US, UK or Europe) or across Asia and the emerging markets. 

There is not one single fund that meets everybody's goals and needs, but a combination of different types of funds and investment trusts can help investors achieve a diversified portfolio, which helps to reduce risk. A mixed investment approach gives a portfolio ample opportunity to grow, while at the same time helping to guard against serious short-term losses. 

This reflects the fact that different types of investment are unlikely all to outperform or underperform at the same time, which therefore reduces the volatility of your overall portfolio.

If you are not a customer of interactive investor you will need to open an account. It is easy to add funds to your portfolio using our online account.

We charge a flat fee of £9.99 a month, which gives you access to our Stocks and Shares ISA, Trading Account and Junior ISA (plus £10 a month if you add a SIPP). 

Bear in mind that as well as our fee, funds charge a separate annual fee, which is paid to the fund management company. Actively managed funds tend to have an ongoing charges figure (OCF) of between 0.85% and 1% a year. In pounds and pence this works out at £85 to £100 on a £10,000 investment. Passively managed funds are cheaper, with some index funds and ETFs for two of the main developed markets (US and UK) costing less than 0.1%. A 0.1% charge would work out at £10 on a £10,000 investment. 

The income units pay out any income generated by the fund (such as dividends from shares or coupons from bonds), while for accumulation units, this is simply reinvested back into the fund. 

The income share class is suited to those who want to draw an income - for instance those using their investments to help fund their retirement. In contrast, the accumulation share class is a better choice for those who do not need or wish to have the income generated by the fund returned to them as they are building up their ISA and/or SIPP. Those who pick the accumulation share class will benefit from the power of compounding, which means in effect that investors get returns on their returns. 

Important information

The price and value of investments and their income fluctuates, so you may get back less than the amount you invested. If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial adviser.

The information we provide in the ii Super 60 is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide is a personal recommendation.

Remember that each fund is unique and exposed to different levels of risk. While some are relatively low risk, others can be very risky and will only be appropriate for more sophisticated investors.

There may be a fund manager charge, which is a percentage of the value of your investment. This can differ depending on the fund.

We charge a monthly flat fee to cover the cost of our services, including the administration of your funds.