The sectors that have performed the best since the ISA product was launched on the 6th April 1999 are China and smaller companies.
Architas, the investment firm, has produced data showing that investments in China & Greater China achieved growth of 824% in that time period.
This is due to the rapid economic growth of the region since 2000. The growth of the Chinese market did not increase markedly immediately after the financial crisis, however it has improved since 2016 due to the transition of the economy from exports of low value added products to increasingly becoming a leader in technology and innovation.
Sectors that are focused on smaller companies were heavily represented in the study by Architas. European smaller companies have provided a return of 639%, with UK smaller companies providing a return of 557%. North American and Japanese smaller companies followed with 406% and 317% respectively.
Asia Pacific ex Japan, Global Emerging Markets, Global Emerging Markets Bonds and Specialist also performed well since the 6th April 1999.
UK smaller companies came out on top when looking at individual funds, with Marlborough Special Situations returning 2,600% and Artemis UK Smaller Companies with 1,505%.
The performance of these sectors show the importance of diversification, ensuring that you have invested widely, keeping in mind the level of risk that is appropriate for you.
Westminster Wealth Management can assist in helping you to navigate your financial future, and expert advice is valuable in complicated times just as much as in simple ones. Contact us today.
The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.
Which Isa fund sectors perform best?