Top-performing investment trusts and funds for stock and share ISAs ever

In honour of ISAs' 26th birthday, we list the top-performing funds and investment trusts since the inception of stocks and shares ISAs in April 1999, along with their current values

This month marks the 26th anniversary of the introduction of individual savings accounts (ISAs) by then-chancellor Gordon Brown in April 1999.

With the introduction of tax-free accounts came a 7,000 allowance in addition to cash and stock and share ISAs.

In recent decades, the ISA family has expanded to encompass innovative finance ISAs, junior ISAs, and lifetime ISAs. Additionally, the yearly ISA allowance has been increased to £20,000.

An important pillar for millions of investors and savers, young and old, are ISAs.

In the 2022 - 2023 tax year, 71.6 billion was deposited into 12.4 million adult ISAs, according to the most recent HMRC data. In the meantime, 1 point 5 billion was subscribed to junior ISAs, which are accessible to individuals under the age of 18.

About 60% of the market value of adult ISAs is made up of stocks and shares.

By maximizing the tax-free allowance and using a wise investment strategy, thousands of people have become ISA millionaires.

Over time, ISAs for stocks and shares typically perform better than those for cash.

In April 1999, when ISAs were first introduced, a £1,000 investment in a cash ISA would be worth £1,949 based on a normal interest rate (as of April 2025), according to Hargreaves Lansdown. A £1,000 investment in a global tracker fund within an ISA for stocks and shares would be worth £5,110.

To that end, we present the top-performing investment trusts and funds over the last 26 years.

Investment trusts and funds with the best performance since the introduction of stocks and shares ISAs.

We asked Hargreaves Lansdown to list the best-performing investment trusts and funds since April 1999 and to illustrate how much an ISA customer could have saved if they had invested £1,000 at that time.

Source: Lansdown, Hargreaves. Returns span the period from June 4, 1999, to June 4, 2025.

Investment trusts produced the largest returns, according to the data. A person would now have over 40,000 if they had invested £1,000 in the Scottish Oriental Smaller Companies Trust in 1999.

Abrdn Asia Focus had the second-best return.

"The top two investment trusts on the list invest in Asia," Victoria Hasler, head of fund analysis at Hargreaves Lansdown, tells BFIA. Over the past 26 years, there has been a significant evolution in this dynamic market segment.

"Despite having different personalities, China and India, the two titans of the region, have both reformed their stock markets in the past 26 years, opening them up to foreign investors.

She continues, "Private equity investments are the focus of the other three trusts that made it into the top five. Because investors typically take on more risk in private equity markets, these markets typically see higher returns over extended periods of time.

With a return of 2,342 percent, abrdn SICAV I-Indian Equity has the best performance over the last 26 years in the open-ended fund space. The second place goes to IFSL Marlborough Special Situations.

"Two of the open-ended funds on the list are focused on India," remarks Hasler. Once more, the structural changes made to the Indian stock markets would have helped these.

"Two more funds are targeted at smaller businesses in the UK. Investments in smaller businesses generally carry a higher risk, especially in a market as small as the UK.

It would have been extremely fortunate for anyone who used an ISA to invest in these funds and trusts in 1999 to receive such impressive returns, even though they would have had to endure some degree of volatility during that time. It can be risky to invest in industries like private equity and smaller businesses, as well as in places like India and the rest of Asia.

Hargreaves Lansdown suggests that you shouldn't worry about the growth they missed because the figures don't represent realistic returns for the typical investor.

"Rather than focusing on the past, it's worthwhile to use ISAs today. These numbers demonstrate that if you're saving for the long run, it's well worth taking into consideration a stocks and shares ISA. However, the appropriate assets and strategies will rely on your situation and goals.