How can you effectively invest in the best investment funds? This question lacks a simple answer due to numerous influencing factors. Portfolios that lead performance charts one year can underperform the next for various reasons, including manager inefficiencies or sector-specific challenges alongside broader economic and political climates.
Therefore, it’s crucial to make well-informed decisions that align with your investment goals, risk tolerance, and thorough evaluations of individual funds.
To inspire your investment strategy, we have identified which IA investment sectors delivered the best returns in 2024, along with notable funds worth considering in each category.
Financials and Financial Innovation
The financial sector emerged as the top performer this year, showcasing an average fund return of 27.4%*. This sector targets funds that invest at least 80% of assets in equity from financial services companies, spanning banking, insurance, fintech, and consumer finance. One standout option is the Jupiter Financial Opportunities Fund, managed by Guy de Blonay, an expert in this complex field. His investment strategy emphasizes sustainable growth and a thematic approach that considers broader economic trends, making the fund a beacon in its sector.
Technology and Technology Innovation
Technology’s influence permeates virtually every industry today, a reality acknowledged by the Fidelity Global Technology Fund. As a core global technology fund, it comprises around 80 holdings, featuring a mix of established tech giants and promising mid- and small-cap companies. The fund manager stresses valuation discipline, ensuring that at least 50% of the holdings are invested in sustainable companies, setting them apart from competitors.
North American Investment Opportunities
The Baillie Gifford American Fund targets a select group of US companies poised for exceptional returns. The dedicated four-member management team typically maintains a long-term approach, holding positions for at least five years. Their conviction-driven strategy, backed by a diverse skill set, ensures that the ten largest holdings comprise over half of the portfolio, enabling them to generate impressive returns consistently.
Opportunities in India and the Indian Subcontinent
Investing in the rapidly growing Indian economy is made accessible through the Goldman Sachs India Equity Portfolio. With a focus on capturing diverse sectoral growth, this fund targets businesses of various sizes. Managed by Hiren Dasani for over a decade, it boasts a solid track record supported by comprehensive resources. The fund’s strategy emphasizes face-to-face meetings with companies, facilitating insightful investment decisions across key sectors such as financials, consumer discretionary, and information technology.
Investing in North American Smaller Companies
Smaller companies often present remarkable growth opportunities due to their developmental stage and lower analyst followings. The T. Rowe Price US Smaller Companies Equity Fund seeks value and growth within the small- and mid-cap sector. Manager Matt Mahon adopts a detail-oriented and balanced portfolio approach, blending value names with traditional growth focuses.
Diversified Global Investment
For investors seeking diversified international exposure, the CT Global Extended Alpha Fund is an excellent choice. Managed by experienced professional Neil Robson, this quality growth portfolio utilizes a 130/30 strategy, allowing Neil to capitalize on stocks expected to thrive while shorting those he believes will underperform. This fund stands out in the global sector for consistently delivering exceptional performance while remaining comparatively small.
*Source: FE fundinfo, as of December 13, 2024.
Past performance is not indicative of future results. You may not receive back the amount originally invested, and tax regulations may evolve. The views expressed herein are those of the author and fund managers and do not constitute financial advice.