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Best Managed Funds UK – Invest with Zero Fees

If you’re looking to gain access to a top fund manager’s experience and knowledge, then investing in a managed fund is an efficient and cost-effective way of doing so. With more and more funds employing an active management style, there has never been a better time to get involved in this section of the fund industry.

In this guide, we examine the Best Managed Funds UK, discussing the key points you need to be aware of when researching your investment and showing you how to invest in one of these funds without paying a penny in commissions.

Best Managed Funds UK List

The list below displays the top ten best managed funds UK available in 2021. In the section that follows, we dive into each of these funds in detail, providing you with the need-to-know information that can ensure an effective investment decision.

  1. ARK Innovation ETF – Overall Best Managed Fund UK – Invest Now
  2. PIMCO Active Bond Exchange-Traded Fund – Best Managed Fund UK for Bond Investing – Invest Now
  3. GlobalETF – Best Managed Fund UK CopyPortfolio – Invest Now
  4. Amplify Transformational Data Sharing ETF – Best Managed Fund UK to Invest in Blockchain Technology
  5. PIMCO Enhanced Short Maturity Active ETF – Best Low Risk Managed Fund UK
  6. ARK Next Generation Internet ETF – Best Managed Fund UK for Innovation
  7. Baillie Gifford Managed Fund – Best Managed Fund UK for Multi-Asset Investing
  8. Jupiter Global Managed Fund – Best Managed Fund for Diversification
  9. Standard Life Assurance Managed Pension Fund – Best Managed Fund for Long Term Growth
  10. M&G Managed Growth Fund – Best Managed Fund UK for Passive Income

Best Managed Fund to Invest in Reviewed

When deciding which managed fund to invest in, there are various criteria you must consider to make an effective investment decision. Metrics such as past performance and yield should be researched thoroughly so that you have a comprehensive overview of the options available in the market.

In this guide, we’ve done all the hard work and have picked out our top ten best managed funds UK. In the section that follows, we will examine these funds individually, providing you with the information you need when deciding which fund to invest in.

1. ARK Innovation ETF – Overall Best Managed Fund UK

Our top pick when it comes to the best performing managed funds is the Ark Innovation ETF. This fund is actively managed and primarily invests in equities of companies leading the way in technological innovations. Examples of companies that this fund is currently invested in include Tesla, Square, Roku, and Teladoc. Through these investments, the ARK Innovation ETF aims to provide high total returns for investors.

ARK Innovation ETF

This fund has performed exceptionally well in recent times and is rightly judged as one of the best managed funds available on the marketplace today. In 2020 alone, the fund returned an exceptional 152.52% for investors – so if you’d invested £5000 at the start of the year, you’d have a final amount of £12,626 (minus fees). Furthermore, the fund has only produced a small negative return once in the past six years. It also charges a modest expense ratio of 0.75%, putting it in line with many other managed funds. So, if you are wondering how to invest £500 or more in this fund, we recommend using eToro to facilitate this as they allow you to invest without having to pay any commissions whatsoever!

67% of retail investor accounts lose money when trading CFDs with this provider.

2. PIMCO Active Bond Exchange-Traded Fund – Best Managed Fund UK for Bond Investing

If you’re looking for one of the best managed investment funds UK for bond investing, then the PIMCO Active Bond Exchange-Traded Fund is worth considering. This fund invests in a range of high-quality, intermediate-term US bonds. Through these investments, the fund aims to provide solid returns regardless of the current market environment.

PIMCO Active Bond Exchange-Traded Fund

One of the great things about this fund is that it provides a solid passive income level for investors. With an annual yield of 2.65% distributed monthly, the PIMCO Active Bond Exchange-Traded Fund offers investors the opportunity to earn a current income that is higher than many Shares ISAs. Furthermore, this fund has shown incredibly consistent performance, making a positive return in each of the past seven years! If you’re looking for one of the best managed funds for bond investing, then the PIMCO Active Bond Exchange-Traded Fund is worth looking in to.

67% of retail investor accounts lose money when trading CFDs with this provider.

3. GlobalETF – Best Managed Fund UK CopyPortfolio

Although it may be different from the other funds on this list, one of the best managed funds for getting broad exposure to the global market is the GlobalETF CopyPortfolio offered by eToro. Featuring a selection of ETFs domiciled in various countries, the GlobalETF is actively managed by an investment professional, with assets being changed and rebalanced depending on market conditions.

GlobalETF CopyPortfolio

The great thing about this CopyPortfolio is that there are no management fees attached, meaning you get access to a professionally managed asset that does not cost you an annual fee. What’s more, the GlobalETF has performed pretty well in recent times, returning 20.52% in 2019 and 4.48% in 2020. Also, at the time of writing, the fund was up 2.21% for 2021 already. If you’re interested in investing in this CopyPortfolio, you can do so quickly and easily with eToro – all for 0% commission!

67% of retail investor accounts lose money when trading CFDs with this provider.

4. Amplify Transformational Data Sharing ETF – Best Managed Fund UK to Invest in Blockchain Technology

The emergence of blockchain technology has prompted many funds to add blockchain-based companies to their portfolio. One of the best performing funds that focus on these companies is the Amplify Transformational Data Sharing ETF. This fund invests in a wide range of firms located in North America, Asia, and Western Europe, intending to provide exposure to the high returns that can be expected from companies that utilise blockchain technology.

Amplify Transformational Data Sharing ETF

With over $1 billion of assets under management, this fund has had a remarkable increase in popularity in recent years. It returned an exceptional 88.18% in 2020 – a noteworthy return considering the scale of the Coronavirus pandemic lockdown. Also, the fund produced a return of 29.18% in 2019 and is currently up 44.74% since the beginning of January! Furthermore, the expense ratio charged by the fund clocks in at 0.71% per year, meaning that if you invested £1000 in this fund, you’d only have to pay £7.10 in fees each year. So, if you’re interested in gaining exposure to the blockchain technology sector, then this fund might be an excellent option for you.

67% of retail investor accounts lose money when trading CFDs with this provider.

5. PIMCO Enhanced Short Maturity Active ETF – Best Low Risk Managed Fund UK

If you are more risk-averse and seek a managed fund that offers consistent returns with low volatility, then the PIMCO Enhanced Short Maturity Active ETF is a fund worth considering. This fund is managed by PIMCO’s veteran management team, who utilise their expert knowledge to construct a portfolio of short-term investment-grade bonds which appeal to risk-averse investors.

MINT

With an expense ratio of only 0.36%, this fund is one of the most inexpensive on our list. Looking at its performance, the fund has produced a positive return in each of the last 11 years – a remarkable statistic considering the various market shocks that have occurred in that timeframe. Furthermore, the fund even offers a small yield of 1.02% per year, which can provide an additional income source to add to the capital growth. If you are in the market for one of the best low risk investments, you can invest in the PIMCO Enhanced Short Maturity Active ETF commission-free with eToro.

67% of retail investor accounts lose money when trading CFDs with this provider.

6. ARK Next Generation Internet ETF – Best Managed Fund UK for Innovation

With the ever-increasing level of technological innovation, more and more companies are becoming involved in sectors such as cloud-based tech and cybersecurity. One of the best performing managed funds that focus on these sectors is the ARK Next Generation Internet ETF. This fund aims to provide long-term growth to investors by investing in equities related to the theme of next-generation internet services.

ARK Next Generation Internet ETF

Due to this innovative investing strategy, this fund has proven itself capable of producing market-beating returns consistently. In fact, in 2020 alone, the fund returned an impressive 157.07% to investors! Furthermore, the fund has also made great returns in 2019 and 2017, returning 35.81% and 87.17%, respectively. Finally, the fund also charges an acceptable yield of 0.79% annually – allowing investors to gain exposure to innovative technological advances in a low-cost manner.

67% of retail investor accounts lose money when trading CFDs with this provider.

7. Baillie Gifford Managed Fund – Best Managed Fund UK for Multi-Asset Investing

One of the best multi-asset funds that are actively managed is the Baillie Gifford Managed Fund. This fund invests in a combination of bonds, shares (including Amazon and Tesla), and cash to achieve capital growth over rolling five-year periods. The multi-asset nature of the fund’s portfolio means that investors get access to a diversified asset, which can help to optimise their risk/return ratio.

Baillie Gifford Managed Fund

With exposure to the tech, financial, and real estate sectors, this fund looks to achieve above-average returns through the equity side of its investments. In terms of performance, the fund has produced a positive return in each of the last five years, even returning a remarkable 47.86% in the past year alone. Furthermore, the fund has achieved a cumulative return of 116.21% over the previous five years, showcasing its consistency. Finally, the Baillie Gifford Managed Fund is also one of the most cost-effective UK funds on our list, offering an expense ratio of only 0.24% per year – this means that if you invested £1000 in this fund, you’d only have to pay £2.40 each year in fees!

67% of retail investor accounts lose money when trading CFDs with this provider.

8. Jupiter Global Managed Fund – Best Managed Fund for Diversification

The Jupiter Global Managed Fund is an accumulation fund, which means that any current income generated through dividends or interest payments is automatically reinvested back into the fund, thereby increasing your overall position size. Alongside this, the fund invests in equities worldwide, providing an overarching exposure to the global stock market. The main countries the fund invests in are the US, Japan, and France.

Jupiter Global Managed Fund

Looking at returns, this best Jupiter fund has performed very well in recent times, returning 31.48% for investors over the past year alone. In addition, the fund has only produced a negative return in one of the past five years – and even then, the negative return was only 0.61%. With the consistent positive returns, combined with automatic reinvestments back into the fund, the Jupiter Global Managed Fund is undoubtedly one of the most popular funds available on the market today.

67% of retail investor accounts lose money when trading CFDs with this provider.

9. Standard Life Assurance Managed Pension Fund – Best Managed Fund for Long Term Growth

If you’re looking for a managed fund that can provide steady, long term growth, then the Standard Life Assurance Managed Pension Fund might be a great option. This fund invests in various assets, including equities, bonds, and property, intending to provide consistent returns in a risk-optimised manner. Furthermore, the fund also includes a significant diversification element through investments in various developed and emerging markets.

Standard Life Assurance Managed Pension Fund

This fund has produced a positive annual return for investors in four of the last five years, even returning a healthy 4.39% in 2020. With over $22.84 billion worth of assets under management, the fund managers make sure to rebalance consistently and consider market conditions when choosing investments. Finally, the fund has also shown remarkable comeback power – after the huge crash in March 2020, this fund recovered well over the year and even surpassed the previous highs!

67% of retail investor accounts lose money when trading CFDs with this provider.

10. M&G Managed Growth Fund – Best Managed Fund UK for Passive Income

The last fund we will discuss on our list of the best managed investment funds UK is the M&G Managed Growth Fund. This is one of the best ETFs for investors who wish to add a passive income element to their portfolio, as the fund provides an annual yield of 1.94% – which is far higher than you would get by just placing your money in a savings account. On top of this, the M&G Managed Growth Fund has performed admirably in recent years when it comes to capital growth, which adds another benefit for investors.

M&G Managed Growth Fund

Looking at returns, the fund has produced 35.34% for investors over the past year alone. This capital growth has been driven by intelligent investments in equities and bonds from all over the world, focusing on North America and Europe. Also, the fund distributes income to investors bi-annually – meaning you get two cash payments each year which would go straight into your brokerage account. The passive income element, combined with the opportunity to grow the value of your investment, make this an attractive investment option for many investor types.

There are many other managed funds available on the market, including from providers such as BlackRock, Fidelity, and Fundsmith. However, the funds listed in this guide are some of the best on the market and can provide global growth to investors from both ends of the risk spectrum.

67% of retail investor accounts lose money when trading CFDs with this provider.

What are Managed Funds?

Managed funds are an exciting investment prospect for a wide range of people. The key characteristic of managed funds is the fact that they are ‘actively’ managed by either a fund manager or a team of fund managers. Through this management, the fund can be optimised and rebalanced regularly, offering investors one of the best ways to invest money in today’s market.

Due to their active management style, managed funds differ from the best index funds because they do not operate passively. Index funds tend to track the performance of benchmark indices such as the FTSE 100, and rarely rebalance or pick different assets. However, managed funds are constantly in motion, ensuring that they are adapting to ever-changing market conditions.

invest in managed funds UK

As the best managed funds are actively managed by a fund manager or a team of fund managers, this offers investors exclusive access to the knowledge and expertise of whoever is in charge of investment decisions. This expertise is invaluable when it comes to investing, as it can help reduce overall risk and promote consistent returns. This access to top management knowledge is often highly cost-effective – managed funds charge an annual expense ratio, which only tends to be between 0.1% and 0.9% of your position size per year.

Overall, managed funds are a fantastic way to invest in an actively managed asset that provides a solid platform for positive performance. As these top performing funds are ever-changing in their asset composition, they can give significant diversification levels as an additional benefit. What’s more, if you’re looking to get involved in the managed funds market, eToro allows you to invest with 0% commission – meaning a larger percentage of future profits are yours to keep.

Why Invest in Managed Funds?

Managed funds are becoming an increasingly popular proposition for many investor types, as they provide a whole host of benefits in a cost-effective manner. In this section, we will discuss three of the main advantages of investing in a managed fund.

Access to Top Fund Managers

Most notably, managed funds provide access to top fund managers’ experience and knowledge who actively manage the portfolio of assets. These managers are often incredibly savvy when it comes to asset picking and portfolio rebalancing, and fund providers ensure they hire the best of the best so that investors experience the best performance possible.

With managed funds, the fund managers or management team will buy shares in assets based on market conditions – meaning you don’t have to do any of the hard work! They do all of the research, all of the scenario planning, and all of the legwork, meaning that you simply have to invest and let them do their thing. Furthermore, all of this is provided cost-effectively, as the fund’s expense ratio is typically a modest percentage and should not eat into profits too much.

Above Average Returns

According to Vanguard, managed funds actively attempt to outperform their benchmark rather than match it – meaning that they often provide above-average returns for investors. Through intelligent management, these funds can generate returns that are consistently higher than some market indices. To give an example of this, look at the returns experienced by the ARK Innovation ETF in recent years, shown in the image below.

managed funds returns

It is worth noting that, although managed funds often attempt to beat the market, this does come at the cost of additional risk. In beating the market, these funds must include assets with high returns potential – but are also riskier than other asset types. Due to this, investors must be aware of the potential for loss and make investment decisions based on their risk preferences.

Diversification Benefits

A key theme in many the best managed funds is that they often invest across various asset classes, sectors, and geographical areas. This provides excellent levels of diversification which, according to the CME Group, is one of the essential characteristics of any investment portfolio. Diversified portfolios are much more risk-optimised than non-diversified portfolios, leading to more efficient returns.

The best managed funds are constantly being rebalanced to maintain an adequate diversification level, which can protect investors in case of market shocks. Fund managers and financial advisers will research and complete advanced calculations which will enable them to choose the correct assets and allocate an efficient weighting to each asset. Through this process, investors gain access to an inherently diversified investment, which can provide a level of comfort in times of market uncertainty.

Best Managed Funds Brokers

Now that you know what the best managed funds UK are, it’s time to examine the broker options available in the market today. Choosing a reliable broker is a crucial part of the investing process, as it ensures your capital is protected, which allows you to trade with confidence.

In the section below, we review two of the best stock brokers that allow you to invest in managed funds, discussing their features and highlighting their fee structures.

1. eToro – Overall Best Broker to Invest in Managed Funds

etoro logo

Our recommended broker when it comes to investing in managed funds is eToro. We recommend eToro due to its extremely attractive fee structure and its vast range of assets. Furthermore, eToro is also regulated in the UK by both the Financial Conduct Authority and the FSCS – providing the highest security level possible for your money and personal details.

As mentioned, eToro has a fantastic fee structure which makes investing in managed funds extremely cost-effective. With many brokers, you’ll be charged a commission just to make your trade, which can add up if you are active in the market. However, eToro does not charge this fee, allowing you to invest inexpensively.

Another great thing about eToro is how user-friendly their platform is. eToro offers detailed charts, along with social feeds where investors can provide each other with investing tips and advice in a quick and digestible manner. Also, eToro provides a revolutionary CopyPortfolio feature that allows you to follow top investors’ trades, giving you access to their knowledge and expertise.

etoro globaletf copyportfolio

Finally, eToro makes it super easy to sign up and begin trading, with the whole process only taking around ten minutes to complete. What’s more, you have many deposit options available, including debit/credit card, bank transfer, and e-wallet. Finally, you can even begin investing in managed funds for as little as $50 (which is only around £36), meaning you can start with a much smaller initial investment than you would have to use if you invest directly with the fund provider.

Pros:

  • Super user-friendly online trading platform
  • Invest in managed funds without paying any commission or share dealing charges
  • Trade CFDs in the form of stocks, indices, commodities, forex, and more
  • 2,400+ stocks listed on the UK and international markets
  • 150+ ETFs
  • Deposit funds with a debit/credit card, e-wallet, or UK bank account
  • Ability to copy the trades of other users
  • FCA and FSCS protections

Cons:

  • Not suitable for advanced traders that like to perform technical analysis
  • No ISAs or SIPPs

67% of retail investors lose money when trading CFDs at this provider

2. Capital.com – Top CFD Broker to Invest in Managed Funds

new capital.com logo

If you’re more of an advanced trader and are looking for an alternative to eToro, then we’d also recommend checking out Capital.com.  This broker is regulated by both the FCA and CySEC, providing two levels of oversight that help to secure your capital. With a minimum deposit of only $20, Capital.com also ensures they are accessible to a wide range of investor types.

Capital.com are best known for their CFD trading services, which involve purchasing a contract based on an underlying asset’s price rather than the asset itself. This not only allows you to speculate on the asset’s share price, but you can also utilise leverage to boost your position. Capital.com offers leverage of up to 1:5 for investors, meaning you can essentially increase your position size by 5X!

capital.com invest in managed funds

Capital.com does not charge any monthly account fees, nor do they charge any inactivity fees or withdrawal fees. Furthermore, Capital.com does not charge commission fees but instead charges a small spread between their bid and ask prices – this spread is usually relatively small but can get bigger depending on market conditions. Finally, you can even practice trading using Capital.com’s demo feature, allowing you to get familiar with their platform before trading for real.

Pros:

  • Educational app for new traders
  • Commission-free trading on managed funds
  • Competitive spreads
  • Leverage of up to 1:5 offered
  • AI assistant identifies your weak points
  • Excellent charting and analysis interface
  • £20 minimum deposit

Cons:

  • Cannot build custom investment strategies
  • CFDs only

71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

How to Invest in Managed Funds on eToro Tutorial

If you’re wondering how to invest in the best managed funds, look no further. This section will provide a step-by-step guide that shows you how to invest with FCA-regulated broker eToro – all without paying a penny in commissions.

Step 1: Open an Account

The first step involves opening your brokerage account. Simply head to the eToro website and click the 'Join Now' button. If you prefer, you can also do this through their investment app. Once the process has begun, you'll need to provide some personal details and choose a username and password.

etoro sign up

67% of retail investors lose money when trading CFDs at this provider

Step 2: Verify your ID and Address

To invest with eToro, you must verify your identity and address. Fortunately, this is quick and easy to do and can be completed online. Simply upload proof of ID (a copy of your passport or driver's license) and proof of address (a copy of a bank statement or utility bill), and click confirm. eToro will then verify your documents, which usually only takes a few minutes.

Step 3: Fund your Account

Before placing a trade, you'll need to deposit into your account. eToro offers various ways to do this, such as credit/debit card, bank transfer, or e-wallet. The quickest method is using a credit or debit card, as the funds will be deposited immediately.

Step 4: Search for your chosen Managed Fund

Click into the search bar at the top of the screen, and type in the name of the fund you wish to invest in (you can also type in its ticker symbol if you know it). For the purposes of this guide, we are looking to invest in the ARK Innovation ETF. Once you see your desired fund, click ‘Trade’.

etoro invest in managed fund

67% of retail investors lose money when trading CFDs at this provider

Step 5: Invest in Managed Fund

In the order box that appears, simply enter your position size in (minimum of $50), check that everything is correct, and click the ‘Set Order’ button.

etoro invest in best performing managed funds

Congratulations! You’ve just invested in one of the best managed funds, all without paying any commissions!

eToro – Invest in Managed Funds with 0% Commission

Throughout this guide, we have examined the managed funds industry in great detail, discussing some of the best options available on the market and analysing why this fund type has become so popular. Due to their ability to provide an actively managed asset in a cost-effective manner, managed funds are an exciting option for many investor types.

However, if you've made your mind up and are ready to invest in a managed fund today, then we recommend using eToro as your chosen broker. eToro is FCA-regulated and allows you to invest in these funds without having to pay any commissions whatsoever. In addition to this, you can even invest for as little as $50 (around £36), giving you the option to build your position up gradually over time.

etoro logo

67% of retail investor accounts lose money when trading CFDs with this provider.

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About Connor Brooke PRO INVESTOR

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.

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