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Over the last 24 months, the value of my Self-Invested Personal Pension (SIPP) has soared. Whereas it was worth five figures two years ago, it’s now comfortably in six-figure territory.
Now, regular contributions have definitely played a role in the growth of my account – I’ve been disciplined here. But the real gains have come from my investments, some of which have generated prolific returns.
A legendary growth stock
Let’s start with Nvidia (NASDAQ: NVDA), because it’s currently showing huge gains in my SIPP.
Over the period in question, it has risen around five-fold. So, it’s had a big impact on my overall returns.
I actually trimmed a bit of my holding here recently. I did this to manage risk as the size of my stake was getting very large and I didn’t want to be overexposed to a potential AI slowdown.
I’ve kept a decent-sized position in the stock though. To my mind, there’s still plenty of growth potential in the long run given the potential use cases for Nvidia’s chips (AI, robotics, self-driving cars, etc).
That said, if I didn’t own the stock, I probably wouldn’t rush out to buy it today. In my view, this is one to consider buying on the dips (which tend to come along on a regular basis).
A top global equity fund
I own a few actively-managed funds in my SIPP. One that has done really well over the last two years is the Blue Whale Growth fund.
This is a growth and quality-focused global equity fund. It’s managed by Stephen Yiu, who is based in London.
What Yiu has done really well over the period is position the fund to capitalise on the global AI buildout. Not only has he had a ton of exposure to Nvidia but he has also had investments in Broadcom, Lam Research, Taiwan Semi, Oracle, and Vertiv.
This has really paid off. Over the last 12 months, the fund has returned nearly 40%.
I’ll point out that this fund can be volatile at times due to its focus on growth stocks. So, it may not be suited to everyone.
If someone has a long-term horizon though, I think it’s worth considering as part of a diversified portfolio. Since its launch in 2017, it has performed exceptionally well.
A brilliant investment trust
I only have one investment trust in my SIPP. That’s Scottish Mortgage (LSE: SMT).
It has done well for me though recently. Over the last two years, it has gained about 80%.
What I like about this product is that it gives me access to both growth businesses that are publicly listed like Amazon and MercadoLibre, and unlisted companies like SpaceX and Databricks. It’s quite a niche product in that respect – there are not many other products like it.
Of course, the focus on unlisted companies means that risk levels are relatively high. These kinds of companies don’t need to comply with the rigorous reporting and disclosure requirements of publicly-traded companies, meaning there’s less transparency for investors.
Again though, I think it’s worth considering as part of a diversified portfolio if someone has a long-term focus. It has certainly helped me grow my wealth.