Where to find the best UK equity funds

This year has been great for the UK stock market, with the FTSE 100 recently reaching a record high of 9,357 on August 22nd, 2025*. It’s also been positive for the broader FTSE All-Share index, which rose 10.4% year to date, while the FTSE 250 is up a more modest 4.8%**. A supportive macroeconomic backdrop, strong performances from a range of sectors, and solid company results have all contributed.

But what’s the outlook for the rest of 2025 – and which UK-focused investment funds do we believe are worth considering?

A solid performance

It’s been an impressive eight months for the FTSE 100, which has risen 10.9% between the start of the year and the market close on September 1st, 2025**. Geopolitical tensions have pushed up the stock prices of companies such as BAE Systems, while the mining sector has benefitted from merger speculation. There have also been economic factors, such as the pound being weak against the dollar, which has been a boost for those earning revenues in the US currency.

Impact of Liberation Day

Of course, it hasn’t all been plain sailing. In fact, the index dropped below 7,700 in April* following US President Donald Trump’s comments on global tariffs. The second quarter of the year was “one of the more action-packed in recent memory”, according to Nick Shenton, manager of the Artemis Income fund. In an update, he noted how equities sold off sharply in the wake of ‘Liberation Day’ before bouncing back strongly. “The UK economy made a bright start to the year with respect to growth as well as announcements of a trade deal with the US and a reset in relations with the EU,” he added.

Mining champions

The FTSE 100 has since recovered strongly, with the share prices of a third of the index experiencing impressive double-digit increases over the past six months***. Investors in Fresnillo, a silver producer, have had most cause for celebration, with the company’s shares rising 140%***. This was largely due to the increase in the price of the precious metal. Gold producer Endeavour Mining is up 63%, while Airtel Africa, a telecommunications business, has seen its stock price rise 56%***. 

The big question is: what happens next? 

Can investors expect the stock prices of UK-listed companies to continue rising, or have they reached a temporary ceiling?

According to Tom Grady, value fund manager and research analyst at Schroders, the UK looks cheap relative to its earnings, equity and dividends. He wrote in an update: “While it is unclear what event could trigger a meaningful revaluation of UK equities, several forces could contribute – from improving investor sentiment to rising dividends. Given the consistent undervaluation across multiple metrics, the case for UK equities looks increasingly compelling.”

Funds to consider

IA UK All Companies, which is home to portfolios that embrace UK-listed stocks, is the second most popular sector among UK investors. They currently have £140 billion invested in this area. Only IA Global has more, with £221.3 billion of funds under management, according to Investment Association data for June 2025****. With hundreds of UK equity funds to choose from, here are three recommendations that are worth considering.

Artemis UK Select

This is a high-conviction, multi-cap UK equity fund that’s run by two experienced managers, Ed Leggett and Ambrose Faulks. We like the fund’s ability to short, which enables the managers to profit when a share price declines, as well as its concentrated nature. This portfolio is particularly well-suited to investors who want high reward potential and are willing to accept potentially greater volatility.

Fidelity Special Values

For more than three decades, this investment trust has aimed to achieve capital growth by investing in unloved UK companies – and holding them until they regain favour. This is another portfolio with a respected management team at the helm, featuring both Alex Wright and Jonathan Winton, who boast years of experience. We believe this trust should appeal to investors seeking a value play in the UK market with a medium to long-term time horizon.

IFSL Marlborough Multi-Cap Growth

Our final suggestion is a fund with an unconstrained approach, meaning it can invest in small, medium, and large UK companies. Its aim is to provide capital growth and outperform the FTSE All-Share index over any five-year period, after charges. The fund has more than half of the portfolio’s assets in large and mega-cap names^, allowing the manager to pick up on the growth opportunities across the whole market spectrum. 

Research all UK Equity funds

*Source: FTSE 100 historical price data at 2 September 2025

**Source: Google Finance, at 1 September 2025

***Source: FTSE 100 performance, at 1 September 2025

****Source: Investment Association, full figures at 30 June 2025

^Source: fund factsheet, August 2025