Top investment funds for September

We asked our freelance writers to share the top investment funds they’d buy this month. Here’s what they chose:

Rupert Hargreaves: Baillie Gifford American

Baillie Gifford American focuses on finding US growth stocks, with the goal of outperforming the S&P 500 by 1.5% per annum over rolling five year periods. Not only has it achieved this aim over the past five years, but it has smashed the target, doubling investors’ cash.

I think this fund offers investors access to a top-quality management team with a track record of picking US growth stocks. The top holdings are Shopify and Moderna.

I would buy the fund for my portfolio for these reasons. However, due to the nature of the companies in the portfolio, it might not be suitable for investors with a low risk tolerance.

Rupert Hargreaves does not have a position in Baillie Gifford American.

Edward Sheldon: Blue Whale Growth

My top investment fund for September is Blue Whale Growth. This is a global equity fund that is focused on high-quality growth stocks.

There are a number of reasons I like Blue Whale Growth. One is portfolio manager Stephen Yiu’s investment approach. Yiu likes to invest in companies that will benefit from structural growth trends and grow their profits over time, but are also available to buy at attractive valuations.

Another is the portfolio’s holdings. Names in the portfolio include Microsoft, Alphabet, and Adobe – all world-class companies.

Finally, there’s the performance track record. Since its launch in 2017, this fund has delivered very strong returns (100%+).

I’ll point out that Blue Whale is a higher-risk fund due to its growth focus. Overall, however, I see it as a very attractive investment.

Edward Sheldon has a position in Blue Whale Growth and owns shares in Microsoft and Alphabet.

Royston Wild: Royal London Sustainable Leaders 

The idea of responsible investing is one which is becoming increasingly popular with investors. According to Morningstar sustainable investment funds in the US attracted $51.1bn in new inflows in 2020, twice the amount recorded a year earlier. And 392 new open-end and exchange-traded sustainable funds were launched in the States to let investors play this phenomenon. Demand in Europe for ESG investments is equally strong, too.

I think Royal London Sustainable Leaders is an attractive sustainable fund to own today. Its aim is to invest at least 80% of its capital in London Stock Exchange companies that it says “are deemed to make a positive contribution to society.” Its largest five holdings are FTSE 100 stocks AstraZeneca, Prudential, Experian, Unilever and SSE. Collectively they account for more than a fifth of the total fund.

Royston Wild owns shares in Prudential and Unilever.

Paul Summers: CFP SDL Free Spirit Fund

My top investment fund pick for September is CFP SDL Free Spirit Fund. Run by veteran Keith Ashworth-Lord, this is the little brother of the same manager’s hugely successful Buffettology fund. Focused on finding quality companies from lower down the market spectrum, Free Spirit operates a concentrated portfolio of just 28 stocks. There’s no index-hugging going on here! 

The 1.16% ongoing charge is steep but seemingly worth it. Since its launch in 2017, the fund has nearly doubled in value (according to its latest factsheet). In contrast, the average gain across the sector has been just 35%. 

Paul Summers owns shares in CFP SDL Free Spirit Fund