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ISA funds for young savers (part 1)

Posted by: Brian Dennehy


For young savers, there’s no time like the present to start saving and investing for the future.  The benefits of compounding are key to a comfortable retirement (even though that may seem like a long time away).  Here we focus on simple solutions for young investors.

This is a starting point.  With all the below, investors shouldn’t adopt a “buy-and-forget” approach.  Inertia is one of the biggest roadblocks to investors making the best possible gains, because even the very best funds will go off the boil eventually.  

If you take nothing else away just remember that one point!

ISA funds for young savers

Here we’re assuming that this young saver will eventually want to use their ISA for retirement income.  They aren’t that interested in financial markets and are after a straightforward solution.  This means they are not interested in monitoring their funds too regularly (but we’d still recommend a review at least once a year).

This saver should focus on funds from fund sectors where the manager has the ability to invest broadly across different asset classes, doing the legwork for you.  We’d break the different investor types into the following buckets based on their attitude to risk:

  • Cautious -  Mixed Investment 0-35% Shares sector
  • Relaxed -  Mixed Investment 20-60% Shares sector
  • Ambitious - Mixed Investment 40-85% Shares sector

The funds with the most consistent returns in each category based on our Vintage fund ratings are:  

There may be other factors to take into account, so this is not a one-size-fits-all solution.  But it’s a good start.  And for investors who haven’t yet begun to save for their retirement that’s a good thing!


  • Do start saving early.  It makes it much easier later on.
  • Do have a plan and a process
  • Apply it with discipline


Topic: Generating growth


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