As the tax year draws closer so does the opportunity to utilise the generous tax benefits offered through individual savings accounts.

Considered long term investment structures, ISAs provide tax free income from shares and funds.

In this article we look at two funds we have picked out for the upcoming tax year deadline.

Scottish Mortgage Investment Trust

Please forgive us picking one of the most popular and well know investment trusts as our first selection, as the composition and performance of the trust is simply to hard to ignore.

The fund has found its success in the strength of the US tech sector with names such as Netflix, Amazon and NVIDIA dominating the top ten holdings.

However, with these companies moving through their growth cycle toward maturity the managers of Scottish Mortgage Investment Trust have opted to diversify slightly into unquoted companies.

While this approach presents a higher risk to investors, it provides the potential for substantial returns over the long term – and the managers have a good track record in investing in unquoted companies.

To date investors in Scottish Mortgage Investment Trust have enjoyed the associated returns of unquoted companies becoming public with firms such as Eventbrite, Spotify, Dropbox and Alibaba.

We see this trend continuing.

Morgan Stanley Global Brands Fund

With the global economy moving towards the maturity stage of the expansion that started after the financial crisis, one may be wise to select those companies with an element of cash flow reliability.

The second selection of this article in Morgan Stanley’s Global Brands Funds does just that.

The fund focuses on ‘household name’ shares such as Visa, Microsoft, Coca-Cola as well as Unilever and Reckitt Benckiser who account for a significant proportion of UK consumables.

While such companies are not entirely immune to stock market volatility or an economic slow down, the demand for their products will remain resilient and so ,therefore, will their cashflows.

The fund has returned 13.89% over the past ten years which compares to 11% from the benchmark MSCI World Net Index.