Are you looking for a fund to kick 2026 off with a bang? Fancy a bit of new-year inspiration with the potential to deliver decent returns?
Here are six Christmas Crackers chosen by our experts that could be suitable for higher-risk investors wanting some added sparkle this festive season.
Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and tax rules can change. Chelsea does not offer advice and so if you are unsure of anything please contact an expert adviser.
FSSA Greater China Growth
China is volatile at the best of times. The sector is either at the top or the bottom of performance tables, and opinions remain divided as we approach 2026. A population of more than one billion people and the presence of some of the world’s largest tech companies are among its key advantages. However, the Chinese regulatory environment can be challenging, equity markets remain shallow, and there are ongoing geopolitical tensions.
FSSA Greater China Growth has consistently delivered positive returns in seven of the past ten years* and demand was so great that it was actually closed to new investment for four years. The managers focus on well-managed businesses across Hong Kong, China, and Taiwan that demonstrate strong corporate governance.
Its largest holdings include prominent names such as Taiwan Semiconductor, Tencent Holdings and AIA Group Limited**. We see this fund as an excellent portfolio in a very specialist area of Asia equities, which is why it’s been a firm favourite of ours for many years.
Landseer Global Artificial Intelligence
Virtually everyone has been discussing how artificial intelligence will change the world and the sector clearly has huge long-term growth potential. The global AI market is expected to grow at a 37% annual rate, reaching $1.68 trillion by 2031***. Enthusiasm for anything connected to this area has already led to share price gains for prominent tech giants such as Nvidia over the past few years. However, there are concerns that an AI bubble is forming, particularly given the number of deals completed in 2025. This has made people nervous.
Our pick in this area is the Landseer Global Artificial Intelligence fund (formerly Sanlam Global Artificial Intelligence), which offers a differentiated approach. This unconstrained portfolio can invest in stocks of almost any size that are expected to benefit from the AI theme. This means it’s not just focused on technology names; its holdings include businesses involved in communication services, industrials, financials, healthcare, utilities and even real estate.
Goldman Sachs India Equity Portfolio
After a disappointing 2025, Chelsea’s research director, Juliet Schooling Latter, believes India is set for a turnaround in 2026, with forecasts that India’s stock market will reach record highs by mid-2026. Foreign investors have withdrawn billions of dollars from India’s equity markets due to slower nominal GDP growth and US tariffs on Indian goods. But a combination of valuations falling to very attractive levels and the country’s position as one of the world’s fastest-growing economies is fuelling optimism.
The Goldman Sachs India Equity Portfolio aims to capture the growth potential of the Indian economy, and it invests in companies of all sizes. We particularly like the team’s ability to meet companies on the ground in India, as this differentiates it from many in its peer group. It currently has 114 holdings, with the 10 largest accounting for almost 30% of assets. ICICI Bank is the most prominent individual position with a 5.7% share**.
Of course, there are risks to consider. This is a single-country fund with a bias toward medium and small companies. It’s also heavily dependent on the Indian economy.
WS Amati UK Listed Smaller Companies
Investors often look further down the market capitalisation scale when seeking exciting, innovative stocks to add some spice to their portfolios. Valuations of UK smaller companies are historically attractive, and this is why we’ve seen takeovers and share buybacks during 2025. Of course, it hasn’t been plain sailing, with an uncertain UK economic outlook and weakening public finances making the outlook challenging.
However, Scott McKenzie, a co-manager of the WS Amati UK Listed Smaller Companies fund, remains upbeat. “We believe that there is still good investor appetite for UK-quoted companies with positive stories to tell,” he said.
This unconstrained fund seeks to invest in structural UK businesses that can grow faster than the economy. The result is a portfolio of 65 to 70 stocks from an under-researched part of the market. We see it as a solid fund that’s managed by a team of exceptionally experienced managers. Few smaller companies funds can boast this level of resource.
M&G Japan
Japan has been changing in recent years. Macroeconomic developments and corporate reforms have put the country back on investors’ radars. Real GDP is projected to grow 0.4% in 2026, driven by domestic demand, but there are issues with higher trade restrictions, weaker global demand and elevated uncertainty^.
Japanese equities surged around 12% in the third quarter of 2025^^, and this rebound was broad, according to Carl Vine, M&G’s co-head of Asia Pacific Equities. “Corporate Japan continues to deliver where it counts: buybacks, dividends, and balance-sheet repair,” he said.
Carl is also the lead manager of the M&G Japan fund, which concentrates on really getting under the skin of the businesses it considers for inclusion. The portfolio, which aims to deliver capital growth and income, is also concentrated, typically holding fewer than 60 holdings. It’s also overweight small and mid-cap names**.
