- With 12 month growth returns of 72.05%, the Morgan Stanley US Growth fund was the best performing fund out of all 4,000 funds analysed.
- From the 15 funds featured in this report, 3 are from UK fund manager Artemis. Artemis also ranked first in our most recent fund manager league table
- The iShares S&P 500 Information Technology Sector ETF has been the number 1 ranking fund in the IA Technology & Technology Innovation sector for performance over the past 1, 3 & 5 years.
2024 has emerged as a crucial period for investors, marked by a significant transformation in fund performance across major sectors. Following the challenges of 2022 and a steady recovery in 2023, this year is distinguished by renewed investor confidence and vigorous market activity. Remarkably, the average growth across all 55 Investment Association sectors, which collectively include 4,000 funds, achieved an impressive 14.35%, highlighting the widespread market resurgence.
In this article, we will highlight the top-performing funds of 2024. We will explore the leading funds across 15 popular sectors and analyse their performance, sector rankings, and the factors driving their success this year.
2024 Fund Performance Analysis
Our analysis covered the performance and sector rankings of 4,000 funds, allowing us to identify those that achieved outstanding results in 2024.
Below, we highlight 15 funds that led their respective sectors in performance over the past year. We also provide the performance data for each of these 15 funds over the recent 3 and 6 months, as well as 1, 3, and 5 years.
The table above illustrates the performance and sector ranking of 15 funds over the recent 3 months, 6 months, and 1 year. These funds achieved the top position in their respective sectors for their 1-year performance. However, as noted in the table, some of the highlighted funds have performed below average in the most recent 3 and 6 months, indicating short-term performance fluctuations.
Such variations in performance are anticipated, which is why most performance analyses and fund ratings focus on consistent performance over 1, 3, and 5-year periods. The table below presents the 1, 3, and 5-year performance, sector ranking, and overall rating for each of the 15 highlighted funds.
All but one of the funds ranked among the top half of performers in their sectors over 5 years with performance returns that considerably outperformed their peers.
Morgan Stanley US Growth
Introduced in 1992, the Morgan Stanley US Growth fund has been acclaimed as the top fund of 2024 due to its remarkable performance. It achieved an impressive growth rate of 72.05%, far exceeding the sector average of 31.84% over the past year, and secured the 1st position out of 232 funds in the IA North America sector.
Managing assets of around £3 billion, the fund has consistently provided strong returns to its investors. Its strategic emphasis on high-growth sectors such as technology, consumer cyclicals, and communication services has been a significant contributor to its success this year. A diverse portfolio that includes leading companies like DoorDash, Cloudflare, and Tesla has further bolstered its standing.
The fund employs a bottom-up strategy, focusing on US large-cap companies with robust balance sheets, competitive edges, and significant growth potential.
Xtrackers MSCI USA Financials UCITS ETF
Launched on 12 September 2017, the Xtrackers MSCI USA Financials UCITS ETF has seen significant growth, with assets under management now at approximately £1.14 billion. The fund achieved an impressive 1 year return of 49.81%, surpassing the sector average of 36.39%. This outstanding performance has established it as the leading fund in the IA Financials and Financial Innovation sector.
This ETF mirrors the MSCI USA Financials Index, providing investors with access to the U.S. financial sector. Its robust performance over the past year is attributed to favorable economic conditions and increasing interest rates, which have enhanced profit margins for banks and financial firms.
The portfolio is heavily invested in major financial institutions such as JPMorgan Chase, Berkshire Hathaway, Visa, Mastercard, and Bank of America. This focused allocation has been key to its success. With a low ongoing charge of 0.12% and a strategic focus on the sector, it offers a cost-effective means to invest in this flourishing market.
Baillie Gifford Long Term Global Growth Investment Fund
Launched on April 10, 2017, the Baillie Gifford Long Term Global Growth Investment Fund manages £2.158 billion in client assets and consistently ranks among the top funds in the IA Global universe.
Over the past year, the fund achieved an impressive return of 41.27%, far surpassing the sector average of 21.26%, and claimed the top spot out of 509 funds in its category.
The fund's success is largely due to its focus on high-growth technology companies like NVIDIA, Amazon, and Meituan, which have seen significant growth and greatly contributed to the fund's overall performance. With a concentrated portfolio of 30 to 60 holdings, the fund conducts thorough research and makes high-conviction investments. It is geographically diversified across the US, Asia, and the Eurozone, targeting companies with sustainable competitive advantages and strong growth potential.
iShares S&P 500 Information Technology Sector UCIT ETF
Launched in 2015, the iShares S&P 500 Information Technology Sector UCITS ETF oversees £8.34 billion in assets, positioning it as one of the largest funds in its field. This fund has consistently excelled in the IA Technology and Technology Innovation sector, earning a 5-star rating for its outstanding performance history. Over the past year, it achieved a growth rate of 40.75%, significantly surpassing the sector average of 30.38%, and ranked 1st among 33 funds in the sector. The fund has consistently held the top position in the IA Technology & Technology Innovations sector over the past 3 and 5 years, highlighting its excellence.
The fund's success is driven by its investments in high-growth technology companies that have leveraged favourable economic conditions and technological advancements. By fully replicating the S&P 500 Capped 35/20 Information Technology index, it has effectively capitalised on these positive trends.
Its portfolio includes industry giants like Apple, NVIDIA, and Microsoft. As a passively managed fund, it offers a low ongoing charge of 0.15%, providing an affordable and efficient way for investors to access leading U.S. technology companies. This blend of strong performance, operational efficiency, and low cost makes it an appealing option for those interested in tech-focused investments.
Jupiter India Select Fund
The Jupiter India Select Fund has shown impressive performance, consistently surpassing its sector peers. In the past year, it delivered a return of 34.75%, outperforming the sector average of 26.39% and claiming the top position in its category. Managing £764.59 million in assets, the fund is among the leading performers in the IA India/Indian Subcontinent sector.
The fund's portfolio covers essential sectors, with significant investments in financial services, healthcare, consumer defensive, industrials, and energy areas crucial to its strong returns. Backed by an experienced management team, it utilises comprehensive market insights and a disciplined strategy to manage market volatility. This approach allows the fund to leverage the dynamic growth of India, one of the world’s fastest-growing economies.
Artemis Global Income Fund
The Artemis Global Income Fund, established on 19 July 2010, manages £1.597 billion in client assets. The fund boasts a strong track record, achieving a growth rate of 34.14% in 2024, the highest among all 51 funds in the IA Global Equity Income sector.
Key factors contributing to this success include investments in financial services, such as HSBC, known for its strong dividend yields and trading below book value, enhancing the fund's returns. Investments in defence stocks, like Mitsubishi Heavy Industries, have also been advantageous due to increased demand in the sector. It's geographical reach spans major regions, including the United States, Eurozone, the UK, and developed Asia.
The fund targets companies with sustainable, growing dividends, using a contrarian approach to identify undervalued opportunities. Its adaptable strategy allows it to respond to economic changes, shifting across regions, sectors, and styles to maximise returns.
This year's strong performance is attributed to effective sector positioning and strategic stock selections, allowing it to outperform its sector peers.
Artemis UK Select Fund
The Artemis UK Select Fund has emerged as a consistent top performer within the IA UK All Companies sector. Over the past year, it achieved growth of 32.86%, comfortably exceeding the sector average of 14.56%, ranking 1st among 221 funds in its category. This highlights its strong capability to generate robust returns while managing £3.14 billion in assets. The fund has consistently excelled as it ranks among the top performers in the sector over all 5 periods analysed.
Several elements have driven the fund’s outstanding performance this year. It employs a 'best ideas' strategy, targeting long-term capital growth through a concentrated portfolio of 40 to 60 carefully selected stocks. Operating without benchmark constraints, this method provides both flexibility and precision in investment choices. Prominent holdings such as NatWest and Mitchells & Butlers, which outperformed expectations, played a crucial role in its success.
By integrating meticulous stock selection with a macro-aware strategy, the fund ensures alignment with wider economic trends. This flexibility enables it to adapt swiftly to shifting market dynamics and take advantage of opportunities to amplify further growth.
GAM Sustainable Emerging Equity Fund
Established in 2013, the GAM Sustainable Emerging Equity Fund has consistently surpassed its sector peers and delivered impressive results over the years. In the past 12 months it generated a return of 32.76% far above the sector’s 12.83% average. This performance place it among the best performing funds in IA Global Emerging Markets sector.
The fund manages approximately £28.35 million in assets, with a geographic focus on emerging markets, particularly in Asia.
In 2024, the fund's performance was bolstered by its significant allocations to the technology and financial services sectors, which saw substantial growth. Prominent holdings like Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. benefited from increased global demand for semiconductors and electronics, contributing positively to the fund's gains. Its focus on companies with strong ESG practices also appealed to sustainability-focused investors, further strengthening its returns.
JOHCM UK Equity Income Fund
The JOHCM UK Equity Income Fund is classified within the IA UK Equity Income sector and currently oversees £1.806 billion in assets.
The fund has consistently outperformed its sector peers. This year, it delivered a standout return of 28.12%, nearly double the sector average of 14.5%, solidifying its status as a top performer.
The fund's success has come from its disciplined active management strategy, identifying undervalued companies within the UK equity market. This fund is well-suited for investors seeking income and capital growth from UK equities, with a focus on contrarian strategies and small to mid-cap companies.
Jupiter Merian Asia Pacific Fund
Established in 1994, the Jupiter Merian Asia Pacific Fund currently oversees £311.88 million in client assets.
This highly-rated fund boasts an impressive track record, consistently ranking among the top performers in the IA Asia-Pacific ex-Japan sector. In the past year, it delivered a return of 27.48%, significantly surpassing the sector average of 14.8%.
This outstanding performance is driven by a strategic focus on high-growth sectors, particularly consumer cyclical and innovative technology industries. Key investments, such as Taiwan Semiconductor and Tencent, have enhanced returns, reflecting their exceptional market growth.
The fund's emphasis on large-cap, high-quality companies in emerging markets further strengthens its resilience and ongoing success. By capitalising on dynamic market trends in the Asia-Pacific region, the fund continues to achieve superior results through a disciplined and effective investment strategy.
WS Charteris Gold & Precious Metals Fund
The WS Charteris Gold & Precious Metals Fund seeks capital growth by primarily investing in stocks of companies involved in the mining, refining, production, and marketing of gold and other precious metals.
While its long-term performance over the past 3 and 5 years has been poor, in 2024, it achieved a 12-month return of 27.36%, surpassing the sector average of 10.2% and placing it among the top funds in the IA Commodity/Natural Resources sector.
In 2024, gold prices soared to record highs, fuelled by central bank purchases, geopolitical tensions, and economic stimulus measures in major economies. The increased demand for gold as a safe-haven asset amid economic uncertainty further enhanced the fund's portfolio. These factors, along with strategically positioned holdings, have been crucial to its success this year.
Managing assets worth £16.59 million, this fund is ideal for investors who are comfortable with the risks of a concentrated, sector-specific portfolio.
Premier Miton Global Infrastructure Income Fund
The Premier Miton Global Infrastructure Income Fund, established on March 23, 2017, oversees £75.22 million in assets and has achieved remarkable results this year.
It has surpassed its competitors, securing the top position in the IA Infrastructure sector. Over the last 12 months, it recorded a growth of 26.79%, exceeding the sector average of 12.84%.
The fund dedicates at least 80% of its assets to global infrastructure companies, employing an active management approach. Its portfolio includes 40-50 stocks from key sectors such as utilities, energy, communication services, and industrials.
About 40% of its investments are in the U.S., with further exposure to Canada, the Eurozone, the UK, and Japan. Its strong performance this year is credited to inflation-linked profits and strategic allocations to high-performing sectors.
Polar Capital Healthcare Opportunities Fund
The Polar Capital Healthcare Opportunities Fund aims for long-term capital appreciation by investing in a globally diverse array of healthcare companies. In the past year, the fund achieved a return of 25.08%, surpassing the sector average of 14.34% and ranking among the top in the IA Healthcare sector out of 81 funds.
Managing £1.42 billion in assets, the fund strategically invests at least two-thirds of its holdings in healthcare-related companies. This strategy leverages growth trends in biotechnology and pharmaceuticals. The healthcare sector's stability during economic shifts, along with the fund’s diversified portfolio, helps mitigate risks while maximising potential returns.
JPM Japan Fund
The JPM Japan fund oversees £839.87 million in client assets and has consistently delivered impressive results this year, achieving a growth rate of 22.23%, nearly double the sector average of 11.699%.
The fund's success is attributed to its growth-focused strategy, emphasising Japanese companies with strong competitive advantages, sustainable business models, and reliable earnings growth.
Employing a bottom-up approach, the fund actively selects high-quality stocks while ensuring sector diversification, with significant investments in technology, industrials, and consumer cyclicals. Managed by seasoned professionals, the fund targets long-term capital growth while implementing risk controls to manage volatility and prevent over-concentration.
Artemis SmartGARP European Equity Fund
The Artemis SmartGARP European Equity Fund, launched in 2001, has emerged as one of the leading funds in 2024. It achieved an impressive 12-month return of 15.65%, significantly surpassing the sector average of 6.46%, and secured the top spot among 128 funds in the IA Europe ex UK category.
Currently managing around £290.04 million in assets, the fund has earned a five-star rating for its exceptional performance this year.
Its strong results are attributed to the innovative SmartGARP tool, which identifies undervalued companies with substantial growth potential. Strategic investments in notable stocks like UniCredit SpA and Novartis AG have driven its outstanding returns, bolstered by targeted allocations in flourishing sectors such as financial services and industrials.
By expertly combining value investing with a focus on earnings growth, the fund has consistently outperformed its peers. These elements have reinforced its status as a top choice for investors seeking growth in European equities.
Portfolio Growth Does Not Mean Good Performance
Fund performance, while crucial, is not a regulated aspect of financial planning. Consequently, many UK financial advisers, despite being regulated and compliant, may lack expertise in fund selection. This gap often results in investors holding underperforming funds, potentially limiting their portfolio's return potential.
Investors frequently misinterpret their portfolio's growth as satisfactory without considering the broader context. For instance, a 5% return might seem impressive at face value. However, market conditions can influence sector and fund performance, sometimes allowing even a portfolio of underperforming funds to generate seemingly attractive returns. The true measure of performance becomes apparent only when comparing a portfolio against one with a similar risk profile but consisting of consistently top-performing funds.
Claim your free portfolio analysis
Within each investment sector, certain funds consistently outperform their peers. These funds are typically managed by professionals who have demonstrated sector-specific expertise.
Recognising the difference between apparent growth and genuine outperformance is key for investors seeking to maximise their returns without unnecessarily increasing risk exposure.
Importance of Fund Performance
Evaluating fund performance is a crucial metric for investors and advisory firms. Although past performance does not guarantee future results, investors often favour fund managers who have demonstrated excellence over various time horizons.
3 important fund performance considerations:
Comparative Benchmarking
The performance of each fund can be assessed relative to competing peer group funds classified within the same sector. This comparative analysis across multiple time horizons provides insights into a fund’s overall quality and the capabilities of its management team.
Managerial Skill
Historical returns indicate a fund’s effectiveness and the competencies of its managers. Funds that consistently rank high within their sectors typically demonstrate a significant level of expertise. Conversely, fund managers overseeing consistently underperforming funds demonstrate a lack of quality and an inability to deliver competitive returns. While past performance alone cannot predict future returns, it remains a valuable tool for assessing manager skills.
Navigating Market Cycles
Over a multi-year span, investments encounter various economic and political environments. The ability of a fund and its managers to navigate these cycles offers valuable clues about their competence and abilities.
Strategic and Diversified Investing for Long-Term Success
Like many things in life, investing can be challenging. But those who adhere to a defined, long-term strategy and have a disciplined, realistic attitude to investing are usually the ones that accomplish their goals efficiently. When this is followed, better results can be obtained.
Investors can strengthen their investments and achieve better results by being aware of the costly mistakes described in this article and taking appropriate steps to avoid them.
Having a strategic investment approach and maintaining a diversified portfolio are key aspects of managing risk and achieving success, in long-term investments.
Remember, no single sector consistently leads in performance, so diversifying across various asset classes and regions can help stabilise and grow your investments over time.
Identifying the best performing funds within each asset class will also contribute to achieving optimal returns and safeguarding your financial future.
Book A No Obligation Call With A Yodelar Adviser
