Fund selections for 2026 by Tom Stevenson: BFIA Talks

Tom Stevenson of Fidelity lists his top three picks for your self-invested personal pension or ISA in 2026

Tom Stevenson of Fidelity shares his top three recommendations for investing in your ISA or self-invested personal pension in 2026. Which funds should you think about investing in this year?

In this BFIA Talks episode, he explains to James Mackreides why he suggests these funds and how to figure out what's best for you.

Additionally, he discusses the importance of maintaining exposure to US and UK stocks in a well-diversified portfolio.

Tom Stevenson, Fidelity | BFIA | YouTube Watch On.

Tom Stevenson's 2026 top funds.

In the podcast, Stevenson told BFIA that it is difficult to recommend funds after three successful years for the stock market.

This is particularly true since you don't want to jump to the top of the market and advise investors to purchase funds right before the market starts to decline.

This implies that it is more crucial to look beyond the more conventional locations.

Stevenson clarified: "We observed that last year, the US stock market, which had been driving markets higher for many years, began to lag a little, and other markets took over."

In addition to emerging markets and the UK market, which performed well last year, we witnessed strong performances from European shares. It was in this context that I considered which funds to recommend this year. The "

Stevenson predicted that the investing patterns observed in 2025 would persist into the upcoming year. He believes that more investors will try to diversify their holdings outside of the US market, which has been robust but pricey.

According to Stevenson, investors will instead begin to focus more of their capital on international markets that might offer better value, be less expensive, and still have promising growth prospects.

Worldwide Stock Fund, Dodge and Cox.

Stevenson's first choice takes advantage of his forecast that more investors will diversify their holdings outside of the US.

Because US stocks only make up about half of the Dodge and Cox Worldwide: Global Stock Fund, he chose it over other global funds that have a much higher exposure to the US (roughly 70%).

One of the reasons he likes this fund is because of what he told BFIA about the rotation out of the US continuing this year. The shares that have performed exceptionally wellparticularly the technology and artificial intelligence stocks that have driven extremely high valuations in the USare also somewhat underemphasized.

"The fund makes investments in different industries. From Taiwan to the UK to Europe, and even some in America, it boasts a diverse array of businesses. My top choice is that.

Particular Situations with Fidelity.

Fidelity's Special Situations fund, which is primarily focused on UK stocks, is Stevenson's second choice.

According to Stevenson, the UK market is undervalued and significantly different from the US, so why invest in a UK fund?

The UK, he claimed, is "more in sectors like pharmaceuticals, banking, mining, quite old economy sectors, if you like, which have actually started to do quite well," in contrast to the tech-focused US.

"And for me, the UK's primary draw is how much less expensive it is than the US. I believe the Fidelity Special Situations Fund is a great way to access markets like the UK, which are extremely inexpensive, as investors are leaving the US in search of other opportunities. The "

Emerging Markets Fund by Lazard.

Stevenson thinks emerging markets might rebound in 2026, despite their poor performance compared to the US market.

There are extended stretches of time when either the US or the rest of the world performs well, as we have seen in the past. America has outperformed for a very long time, and I believe we are now approaching a point where that rotation is occurring and emerging markets appear appealing. The "

"There are more good, long-term reasons to invest in emerging markets as well," Stevenson added. According to him, their populations are young and expanding, and their growth rates are generally higher.

Additionally, emerging markets are typically most appealing when the US dollar declines. Stevenson believes that "the dollar is likely to continue to fall, and so we think that's a good backdrop for emerging markets" as interest rates in the US decline.

According to Stevenson, the Lazard Emerging Markets Fund has a strong track record of making investments in these markets, so it was chosen to profit from this.

About the podcast.

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