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Check out managed funds

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Managed funds are a half-way house between trackers and investing directly in shares. But you'll need to pick a fund manager with a successful investment strategy.

Some investors prefer to put their money in managed funds where an investment expert picks shares on their behalf. If you pick the right fund, you can make good money and you should go for someone with an excellent track record who has the ability to outperfrom the market and has done so in the past.

But the trouble is that many fund managers don’t perform as well as trackers.

Consider these things:

1. There are quite literally hundreds of managed funds to choose from which invests in different markets and regions across the globe. You'll need to do your homework and choose funds which have the best prospects for performing well. You can find out more about managed funds, by visiting Citywire or Trustnet.

2. You'll need to pay an annual management charge to the manager in return for their expertise, and often an initial charge to set up your investment. Remember to keep a close eye on how well the fund performs. Don't pay for a manager who consistently under-performs the market. If that happens think about switching your investment, but check whether there are any exit penalties before doing so.

3. Take a look at How to pick the best pension funds for tips on how to choose managed funds. Although this article is about choosing funds for your pension, it applies equally to all managed fund investment and ISAs too.