Metro’s weekly column, Where to Invest, is for anyone looking for fresh ideas and insight into where they might put their savings.
This week, we ‘re reflecting on the year behind us. Where were the best, and worst, places to have put your money in 2025?
It’s been a rollercoaster year for investors contending with Trump’s trade tariffs, Russia’s warmongering and a faltering economy at home.
In a world rocked by so much uncertainty, it’s perhaps not surprising that investors have flocked to gold.
Traditionally a safe haven, gold bullion prices have soared by over 50% this year, a rise which has been amplified by the companies that mine it.
Analysis by funding platform Bestinvest shows that funds investing in gold and silver miners have seen stellar returns in 2025, with the top nine performers more than doubling in value.
Jason Hollands, managing director of Bestinvest, says: “If we look at which individual funds have had a cracking year in 2025, out of nearly 3,000 the top performers have been funds investing in precious metal mining companies.
‘In contrast, property funds and Indian equity funds are to be found lurking at the bottom of the performance tables.’
2025’s top 10 investment funds
Ranking Fund name Growth (%)*
1 SVS Baker Steel Gold & Precious Metals 161.51
2 Ninety One Global Gold 144.65
3 WS Ruffer Gold 141.69
4 Jupiter Gold & Silver 141.1
5 UBS Solactive Gl Pure Gold Mnrs UCITS ETF 139.9
6 SVS Sanlam Global Gold & Resources 136.35
7 BlackRock Gold and General Fund 127.48
8 iShares Gold Producers UCITS ETF 123.91
9 Quilter Investors Precious Metals Equity 123
10 iShares MSCI Korea UCITS ETF 71.35
*Growth refers to percentage growth in GB pounds between 31/12/2024 and 03/12/2025
Soaring gold and silver prices, as well as demand for other materials used in developing AI and renewable energy infrastructure, help explain why precious metals and other commodities have done so well.
Hollands says: ‘While double digit returns have been enjoyed in a wide range of markets, the standout asset this year has been gold.
‘At the time of writing, in Sterling the gold price is up 52% year to date, buoyed by voracious buying by central banks as they have diversified away from US Treasuries.’
But it hasn’t just been those who piled into the shiny stuff at the start of the year who’ve seen their wealth grow.
The past 12 months have turned out to be a year of bumper returns for investors across most markets and asset classes.
‘While AI has been the dominant theme talked about in global equities, it certainly hasn’t been the only game in town. Far from it,’ says Hollands.
Since the start of the year, the ‘boring’ FTSE 100 index – the 100 largest blue chip companies on the London Stock Exchange – has returned 22.8%.
The MSCI Emerging Market index, which covers large and medium sized companies across 24 emerging markets including Taiwan, China and Korea, is up 24.4%.
The MSCI Europe ex UK index, including large and medium sized companies across 15 developed markets in Europe such as France, Germany, Switzerland and the Netherlands, has risen 24.7%.
Japan’s Topix, which includes Japan’s largest companies, has returned 17.4%.
In contrast, the S&P 500 Index – the biggest 503 companies listed in the US and home to the AI titans – has returned a more modest 11.5%, which Hollands says is partly down to the impact of a weaker US Dollar which has acted as a headwind for British investors.
‘Even in local currency terms, US equities have still lagged these other regions this year,’ he says.
‘As for the ‘Magnificent Seven’, the Indxx Magnificent 7 Index, which equally weights the US Big Tech titans, returned 18.1%. Nice but less than the FTSE 100.’
Now for the bad news.
Those keeping their money in cash savings might think they’ve done well to avoid the huge swings in markets panicked by tariffs, ballooning government deficits, the longest US government shutdown ever and constant debate about an AI bubble that might burst.
But with the very best fixed savings rates around 4% at the start of the year, had you opted for this so-called “safe” bet, Hollands says you’d be among the biggest losers this year.
2025's top 10 investment fund flops
Ranking Fund name Growth (%)*
1 TM home investor fund -17.31
2 Liontrust India Fund -16.09
3 Stewart Investors Indian Subcontinent All Cap -15.65
4 Pictet Timber -15.06
5 iShares Global Timber & Forestry UCITS ETF -12.76
6 Xtrackers Japan Government Bond UCITS ETF -12.45
7 abrdn Indian Equity -12.33
8 Premier Miton US Opportunities -12.18
9 Comgest Growth India -12.12
10 Vanguard Japan Government Bond Index -12.06
*Growth refers to percentage growth in GB pounds between 31/12/2024 and 03/12/2025
Another weak spot has been India. The IA India sector dropped by 7%, the worst of all the sectors listed by the Investment Association.
‘Investors have been generally getting out of Indian equities this year, largely down to valuations being seen as way too expensive, while earnings growth has slowed and trade tensions with the US have caused concerns,’ says Hollands.
Also in the loser’s corner are smaller companies – both in the UK and the US.
The average IA North American Smaller Companies fund eked out a 1.6% return and the average UK Smaller Companies fund just 2.8%.
Property has been another disappointing area, according to Hollands, continuing a trend of recent years.
He says: ‘This is symptomatic of relatively high borrowing costs and headwinds for the UK domestic economy as companies struggle with rising employment costs. The recent tax raising UK Budget is unlikely to help.’
(Percentage returns are calculated in GB Pounds between pounds between 31/12/2024 and 03/12/2025)
