You are here: Home - Investing - Experienced Investor - News -

ISAs come of age: the top performing sectors over 18 years revealed

0
Written by: Paloma Kubiak
09/03/2017
As ISAs turn 18, long-term investors in biotech and healthcare have been rewarded with returns of more than 1,300% in that time. Here’s a breakdown of the top performing sectors.

According to the Association of Investment Companies (AIC), the top performing investment company sector over the last 18 years is Sector Specialist: Biotechnology & Healthcare, up a whopping 1,313%.

In second place is the eight company strong Country Specialist: Asia Pacific sector, up 1,280% in 18 years, against an overall weighted average investment company return of 388%.

This is followed by the Global Emerging Markets sector, which is up 805%, though the AIC noted that it’s had a more volatile time over the last five years.

Within the top five, the Asia Pacific Excluding Japan sector has also performed well as it’s up 794% and Smaller companies has also produced some strong returns. The European Smaller Companies sector takes fifth place, up 625%, followed by North American Smaller Companies (556%) and UK Smaller Companies (520%).

The Private Equity sector also posted above average returns, up 507%, and the UK All Companies sector rose 456%.

YM.TOP.PERFORMING.TABLE

Annabel Brodie-Smith, communications director at the AIC, said: “Everyone has different ideas about what constitutes ‘long-term’ – in fact our own investor confidence research this year found that 8% of active investors consider three-to-five years a ‘long-term’ investment horizon. Whereas we consider long-term investments to be at least five years and preferably longer.

“There’s no doubt that 18 years is a long-term investment and it’s clear investors in some of the top performing investment company sectors have been rewarded for their patience over the long-term. In some sectors investors have needed bags of patience, as demonstrated by the volatility of the Global Emerging Markets sector in recent years, but their investment has paid off over the long term.”

Brodie-Smith said there’s no telling which sector will be topping the tables in the future so investors need to focus on a diversified portfolio for the long-term.

Tagged:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2263031-women-on-cogs-1-master-colour-web
Women in the spotlight: the best female fund managers

To mark International Women's Day yesterday, we look at four female fund managers who might provide inspiration to those wanting...

Close