Two 'ISA Millionaire' funds I'd buy for my ISA this year

While there has been a lot of focus on passive investment strategies (ETF investing) in recent years, I don't think it's game over for actively-managed funds just yet. In fact, adding a selection of high-quality, actively-managed mutual funds to your ISA is quite a sensible investment strategy, in my view.

Today, I'm profiling two funds that are popular among Britain's ISA millionaires. Both funds have the potential to provide strong capital growth over the long term, plus diversification benefits.

Lindsell Train Global Equity fund

Nick Train's Global Equity fund is not only popular among ISA millionaires, it's also one of the most popular funds in the country. That's not really a surprise when you consider the fund's impressive long-term performance track record - over the last five years it has returned an amazing 120% for investors.

What I like about this fund is that it's very different to your average 'global equity' fund. You see, most have a disproportionately large weighting to the US, and are rammed full of overvalued tech stocks such as Amazon and Facebook.

Not this fund. Fund managers Nick Train and Michael Lindsell look for the best companies they can find across the world, focusing on conservatively-financed companies that can produce a high and stable return on capital. Out of the 1,700 companies in the MSCI World universe, the duo believes that only 180 are 'great' companies. From this list of great companies, they've constructed a concentrated portfolio of 25-30 names. At present, top holdings include Unilever, Diageo, Heineken and London Stock Exchange.

For those looking to diversify internationally, without being overexposed to overpriced US tech stocks, this fund is an excellent option, in my view. Fees are very reasonable with an ongoing charge of just 0.54% on the Hargreaves Lansdown platform.

Stewart Investors Asia Pacific Leaders

Another fund I like the look of is the Stewart Investors Asia Pacific Leaders fund, which as its name suggests, focuses on Asia. Given that the continent is home to some of the most dynamic, fast-growing economies in the world, a long-term allocation to the region could be a smart move, in my opinion.

The portfolio managers of this fund adopt a conservative long-term investment philosophy, focusing on large, well-managed businesses that have strong cash flows. The advantage of this strategy is that the fund can offer a level of stability during tough market conditions.

At present, the fund has the highest weightings to India, Taiwan, Hong Kong, Australia, Singapore and Japan. The portfolio is fairly concentrated with around 40-60 holdings, with a bias towards defensive areas of the market and domestically-focused stocks that should benefit from the rising wealth of domestic consumers.

Over the last five years, the Asia Pacific Leaders fund has returned a healthy 48%. Fees are relatively low with an ongoing charge of 0.86% on Hargreaves Lansdown. For those looking for exposure to fast-growing Asian economies, this fund could be a top choice.

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Edward Sheldon owns shares in Unilever and Diageo. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Facebook, and Unilever. The Motley Fool UK has recommended Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.