Moneyspider in the News

Former ISA princes now paupers

Ifaonline.co.uk

Investors who put money into some of the most popular ISA funds in 2002 have seen dramatically different returns, according to research from Moneyspider.com

Of the five biggest selling ISA funds in 2002, Artemis UK Smaller Companies Fund made a return of 136% over a five-year period, meaning a £5,000 investment would yield a £6,820 profit.

By comparison, Fidelity's FIF American Fund returned just £610 or 12.2% on a £5,000 investment. The fund received a lot of interest five years ago due to expected recovery in the post 9/11 US economy.

Tony Ahearne, from Moneyspider.com, says: "It is always interesting to see how specific funds have performed, but crucially it is the sectors that ISA and unit trust investors need to be aware of going forward."

According to Moneyspider.com, niche specialist ISA funds now offer the best returns, with some seeing return rates of as much as 327% over five years.

Ahearne says investors are often tempted to follow the fashionable industry of the day, but is often the less well-known sectors, which are providing the best returns over a long-term investment.

Funds which are currently performing particularly well include JPMorgan Natural Resources Fund and Schroder UK Mid 250, both of which have seen high levels of return over the past five years.