3 UK funds to buy for a Stocks and Shares ISA

first_img Enter Your Email Address Paul Summers owns shares in Vanguard LifeStrategy 80% Equity Fund and Lindsell Train Global Equity. The Motley Fool UK has no position in any of the shares mentioned. 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. How someone decides to spend the up-to-£20,000 they can put into a Stocks and Shares ISA in any financial year will depend on their financial goals, risk tolerance and time horizon. As a long-term investor, having a good proportion of money invested in funds I don’t need to tamper with makes a lot of sense to me. Here are three that I like, two of which I already own.Instant diversificationOne holding I continue to accumulate within my Stocks and Shares ISA is the Vanguard Life Strategy 80% Equity Fund. Offered by the US passive investing giant, this fund might be considered a one-stop-shop for anyone who has very little interest in stock markets beyond increasing their wealth. Alternatively, I think it can be a great way of counterbalancing riskier investments.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…This Ronseal-like ‘does-what-it-says-on-the-tin’ fund invests 80% of the money I put to work across thousands of companies around the world. The remaining 20% is shoved into fixed-income assets, which tend to be less volatile than stocks. This strategy won’t stop the fund from dipping in value during a market crash, of course. However, it should help mitigate the (temporary) pain.  Of course, there will come a time in life when people want to reduce their exposure to stocks. Recognising this, Vanguard also offers 20%, 40% and 60% versions of the LifeStrategy fund. A 100% Equity fund is also available.Quality pickMy love of Vanguard’s cheap, passive range doesn’t mean I’ve no time for funds managed by proven professional investors. After all, the former will only give me the market return. To beat the market, I’ll need to use the latter (or pick stocks myself).One active fund I’ve been buying quite a lot of recently is Lindsell Train Global Equity. This highly-concentrated, low-turnover fund has climbed a little over 350% in value since 2011.  Investors wouldn’t have got that sort of return by simply holding a FTSE 100 index tracker!Despite its stellar track record over the years, owning Global Equity isn’t without risk.  Some of its biggest holdings — FTSE 100 firms Diageo and Unilever — have been hit to some extent by the pandemic. The fact that this fund doesn’t buy value stocks could also hamper returns for a while.Nevertheless, I’m a firm believer that quality always wins out over the long term. Go smallAs a long-term investor with many years left in the market, I think having some exposure to the smaller businesses in my Stocks and Shares ISA is really important. Market minnows have the ability to grow far quicker than larger listed firms, which should ultimately lead to larger share price gains. This is why my final pick is Premier Miton UK Smaller Companies. Since launching in 2012, the AIM-focused Premier Miton fund has achieved an annual return of 18.5%. That compares very favourably to the 12.7% return of the IA UK Smaller Companies sector. No wonder it’s the most researched fund of its kind, according to Trustnet.  Of course, there are a few things to remember. Past performance is no guarantee of future returns. Moreover, these returns could vary wildly from year to year due to the volatility of small-cap stocks. Also, investors must be comfortable paying the relatively high management fees compared to, say, the LifeStrategy 80% fund.  The Premier Miton fund won’t suit all investors, but I’d be happy to buy it today. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Image source: Getty Images 5 Stocks For Trying To Build Wealth After 50 Paul Summers | Wednesday, 31st March, 2021 | More on: DGE ULVR 3 UK funds to buy for a Stocks and Shares ISAcenter_img Click here to claim your free copy of this special investing report now! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Paul Summerslast_img read more