Narrow the field with our favourite funds
Before you use the Wealth 50, there are some things you need to know.
This shortlist of our favourite funds across the major sectors is for people who:
- Do their own research to see if a fund fits with their investment objective
- Understand a fund can fall as well as rise in value and that you could get back less than you invest
- Know how to select and maintain a diversified portfolio to reduce risk
If this doesn’t sound like you, you might want to consider a ready-made portfolio.
We think it’s important to have considered your goals when investing, and regularly assess your investments against these. If you need help with this or if you’re not sure an investment is right for you, we have experienced financial advisers who can help.
The Wealth 50 isn’t personal advice, and a change to the list isn’t a recommendation to buy or sell.
A shortlist by our analysts
Looking to invest in a fund? With more than 3,000 funds available, the choice can be bewildering.
The Wealth 50 can help – it’s a shortlist of our analysts’ favourite funds.
Every year we spend thousands of hours crunching the numbers, and meeting fund managers, to uncover funds we believe have the most potential in each sector.
How we select funds
When you buy a Wealth 50 fund you can be confident it's passed our analysts' tests.
We look for:
- A distinguished career - we analyse the manager's entire career, so we know their strengths.
- A strong track record - a fund manager needs a history of good performance across different market conditions.
- A robust process - we meet managers a number of times to get an understanding of how they invest, and at least once a year when they're on the list.
- Commission - we never take payment or commission for funds to appear on the Wealth 50. We only look at performance potential.
Active or tracker?
Most funds on the Wealth 50 are actively managed. They aim to perform better than their benchmark over the long term.
If you want to invest in tracker funds, we've got that covered too. Trackers aim to track their index as closely as possible. With less management involved, this keeps costs to a minimum.
In addition to fund management charges, you’ll pay an annual platform charge to HL. This is never more than 0.45%. For funds, there are no dealing charges.
In need of some guidance?
Have a look at our Guide to Investing in Funds to find out more, and how to choose the right ones for you.
When you buy a Wealth 50 fund, you'll get an update each time we meet the managers, so you'll know exactly what's going on with your money.
The ongoing costs associated with the fund. This will include both the fund manager's annual charge and some other expenses such as depositary, registrar, accountancy, auditor and legal fees, but not the fund's transaction costs such as dealing commissions.
Sometimes ongoing savings come from a loyalty bonus - part of the fee gets paid back to you. They're tax-free in an ISA or SIPP but you might have to pay tax in a Fund and Share Account.
The synthetic risk and reward indicator measures a fund's volatility. The higher the number, the higher the level of volatility or risk, and vice versa. The number is calculated by each investment group, not Hargreaves Lansdown. They follow a set of rules laid out by the Financial Conduct Authority.
It's based on how much a fund's risen or fallen in the past. Usually the more risk taken, the higher the potential return, but the greater the risk of loss.