Interactive Investor

20 active funds to outperform the market

4th August 2016 12:06

Moira O'Neill from interactive investor

Active funds have the potential to perform better than index trackers, but there is the risk that the fund manager may make the wrong decision. Here we have selected 20 active funds covering different asset classes to use as "satellites" alongside core tracker fund holdings.

Click here to see our 20 top index-tracking fund choices for "core" holdings, as well as a handy beginner's guide to fund buying.

UK stockmarket income

CF Woodford Equity Income C Inc or Acc

Managed by the UK's best- known fund manager, Neil Woodford, this invests primarily in UK-listed companies. It aims to provide a reasonable level of income together with capital growth.

OCF: 0.75%

SIN - Inc: GB00BLRZQ620

Acc: GB00BLRZQ737

MI Chelverton UK Equity Income B Inc or Acc

By investing in predominantly medium-sized companies, it aims to deliver a high and growing quarterly dividend and the prospect of good long-term capital growth.

OCF: 0.92%

ISIN - Inc  GB00B1FD6467

Acc: GB00B1Y9J570

Marlborough Multi Cap Income P Inc or Acc

With a bias to small- and mid-cap companies, it seeks to generate an attractive and growing level of dividend income, plus long-term capital growth.

OCF: 0.80%

ISIN - Inc: GB00B908BY75

Acc: GB00B907VX

UK stockmarket growth

AXA Framlington UK Select Opportunities ZI Inc or Acc

Run by the very experienced and highly respected Nigel Thomas, it can invest in UK companies of any size.

OCF: 0.83%

ISIN - Inc: GB00B703ZS07

Acc: GB00B7FD4C20

Old Mutual UK Mid Cap R Inc or Acc

Its aim is to provide capital growth by investing primarily in a portfolio of medium-sized UK companies.

OCF: 0.85%

ISIN - Inc:  GB00B8FC6L92

Acc: GB00B1XG9482

Marlborough UK Micro-Cap Growth Fund P Acc

Managed by Giles Hargreave, it aims to provide a total return of capital and income in excess of that achieved by the FTSE Small Cap Index (excluding investment companies) over the medium to long term.

OCF: 0.80%

ISIN: GB00B8F8YX59

Global stockmarket

Fundsmith Equity I Inc or Acc

Managed by Terry Smith, it invests in equities on a global basis for the long term. It will not adopt short-term trading strategies.

OCF: 0.97%

ISIN - Inc: GB00B4MR8G82

Acc: GB00B41YBW71

Lindsell Train Global Equity B Inc

Managers Nick Train and Michael Lindsell want to achieve long- term income and capital growth by constructing a concentrated portfolio of 20 to 35 "exceptional" companies from around the world.

OCF: 0.84%

ISIN - B Inc: IE00B3NS4D25

D Inc: IE00BJSPMJ28

Artemis Global Income I Inc or Acc

The fund is better diversified than some global equity income funds, using its full global remit to exploit income opportunities and keeping its UK content relatively low.

OCF: 0.81%

ISIN - Inc: GB00B5N99561

Acc: GB00B5ZX1M70

Specialist overseas shares

Man GLG Japan CoreAlpha Professional Inc or Acc

Japan is a major developed market, and this is a sound choice for getting core Japanese equity exposure into your portfolio. It invests in large-cap Japanese companies focusing on out-of- favour "value" stocks.

OCF: 0.97%

ISIN - Inc: GB00B3F47512

Acc: GB00B0119B50

Stewart Investors Asia Pacific Leaders B Inc or Acc

Its goal is to achieve long-term capital growth from a portfolio of large and medium-sized companies in the Asia Pacific region (excluding Japan, including Australasia).

OCF: 0.91%

ISIN - Inc: GB00B57S0V20

Acc: GB0033874768

Fidelity Emerging Markets W Acc

Aiming to offer long-term capital growth, it invests mainly in company shares in countries experiencing rapid economic growth including those in Africa, the Indian sub-continent, Latin America, South East Asia, Europe and the Middle East.

OCF: 1.07%

ISIN: GB00B9SMK778

Absolute return

Newton Real Return W Inc or Acc

A good "one stop shop" for the more cautious investor, it aims to generate a total return compromised of long-term capital growth and income by investing in a broad multi-asset portfolio.

The fund's manager Iain Stewart's first priority is capital protection and then he looks to deliver returns of 4% above cash a year over the longer term.

OCF: 0.79%

ISIN - Inc: GB00B7W36529

Acc: GB00B8GG4B61

Bonds

Kames Absolute Return Bond Fund B Acc

It aims to generate positive absolute returns for investors over a rolling three-year period, irrespective of market conditions.

OCF: 0.69%

ISIN: IE00B6SPX874

Fidelity MoneyBuilder Income Y Inc or Acc

A relatively conservatively managed, high-quality, investment-grade corporate bond portfolio, it aims to provide an attractive level of income and predominantly invests in UK fixed-interest securities, with some exposure to other developed markets.

OCF: 0.56%

ISIN - Inc: GB00B3Z9PT62

Acc: GB00BBGBFM09

Jupiter Strategic Bond I Inc or Acc

A go-anywhere bond fund that aims for a high income and capital growth by seeking out the best fixed- income opportunities in the world.

OCF: 0.73%

ISIN - Inc: GB00B544HM32

Acc: GB00B4T6SD53

MI TwentyFour Dynamic Bond I Inc or Acc

By investing in a broad range of bonds and fixed- income assets, it aims to provide an attractive level of income along with an opportunity for capital growth.

OCF: 0.80%

ISIN - Inc: GB00B57TXN82

Acc: GB00B5VRV677

Marlborough Global bond P Inc or Acc

A very diversified portfolio of bonds from around the world, including the UK. A good way to diversify bond exposure.

OCF: 0.45%

ISIN - Inc: GB00B8H7D001

Acc: GB00B6ZDFJ91

Property

M&G Property Portfolio I Inc or Acc

It invests in a diversified portfolio of commercial property - such as retail, offices and industrial, predominantly in the UK. Offers good, core exposure to property.

OCF: 1.15%

ISIN - Inc: GB00B89X8P64

Acc: GB00B8FYD926

Henderson UK Property I Inc or Acc

This fund has a commitment to paying a high income together with some growth of capital through investment primarily in commercial property and property-related assets.

OCF: 0.85%

ISIN - Inc: GB00BP46GG64

Acc: GB00BP46GF57

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.