Top performing funds of 2021

So what does the rear-view mirror tell us happened in 2021?

According to Nick Wood, head of fund research at Quilter Cheviot: “2021 was a year dominated by the reopening of the global economy as a result of the successful vaccine rollout, followed swiftly by the emergence of new variants and reminders that the Covid pandemic is a long way from being resolved. However, in the investment universe this didn’t stop asset prices continuing to rise, with long-term trends continuing to play out. No more was this the case than in the investment trust market, where private equity dominated the performance tables following strong growth in the previous 12 months. This included Baillie Gifford’s Schiehallion, NB Private Equity, BMO Private Equity, Riverstone Energy and Standard Life Private Equity.”

US funds continue to dominate

Focussing on more mainstream funds, the list of top 10 best performers are dominated by US focused funds once again. That includes four US equity focused funds and two technology funds, which naturally have a heavy bias towards the region. This is to be expected given how well the region performed last year and the fact the mega cap tech businesses show no sign of slowing down, despite a quieter year compared to others.

India also performed well

Wood comments, “India was the other theme that performed well, with three of the top ten funds, and very much the place to invest within emerging markets last year. With China still looking a rather uncertain place to invest, India could be a good alternative for investors over the next few years looking to take advantage of a growing middle class and increased infrastructure spending. The top spot, however, goes to Guinness Global Energy, no doubt buoyed by the recovery in the oil price since the start of 2021. “

Here is the list of the best performing and the worst performing funds in 2021.