Most-bought funds and trusts in 2019
After a positive year for stocks, we reveal which funds you were buying last year.
6th January 2020 09:29
by Myron Jobson from interactive investor
After a positive year for stocks, we reveal which funds you were buying last year.
Globally diversified funds were all the rage in 2019 amid a backdrop of heightened geopolitical uncertainty, accounting for eight of the top 10 fund purchases on interactive investor, the UK’s second largest direct to consumer investment platform.
At the top of the class is Fundsmith Equity, pipping Lindsell Train Global Equity to the number one spot. But Vanguard dominates the bestsellers list, scooping half of the top 10 spots.
Three of these come from Vanguard’s popular LifeStrategy range, with the 80% Equity variant in third ahead of the 60% and 100% Equity equity options in fourth and sixth positions respectively.
The only two funds on the list without a global mandate are Lindsell Train UK Equity in fifth position and Vanguard US Equity Index which ranks eighth.
AXA Framlington Global Technology and Baillie Gifford Global Discovery, which seeks out innovative and fast-growing companies from all around the globe, complete the top 10.
On the investment trust side, Scottish Mortgage (LSE:SMT) remains rooted at the top of the table – boasting a record as the most purchased investment trust on the interactive investor platform month in, month out since February 2014, except once.
City of London (LSE:CTY) came in second, with Finsbury Growth & Income (LSE:FGT) completing the top three.
One notable inclusion on the bestsellers list is Smithson (LSE:SSON). Overseen by star fund manager Terry Smith of Fundsmith Equity, the fund only launched in October 2018 off the back of a record-breaking £822.5 million fundraise. Its popularity among interactive investor’s customers did not wane in 2019 and it ranks sixth, behind JPMorgan Emerging Markets (LSE:JMG) and Schroder UK Public (LSE:WPCT).
The Renewables Infrastructure Group (LSE:TRIG), which invests in assets generating electricity from renewable sources, is the sole ethical proposition on the list, while the F&C Investment Trust (LSE:FCIT), the world’s oldest investment trust, makes the cut in tenth position.
Dzmitry Lipski, Investment Analyst, interactive investor, says:
“At a time where a number of geopolitical uncertainties ranging from the US-China trade war, Brexit and even the political demonstrations in Hong Kong rocked the investment landscape, it is no surprise that our customers favoured funds that spread investment risks by investing in opportunities across the globe.”
“It will come as little surprise to even those with a modest amount of investment knowledge that Fundsmith Equity and Scottish Mortgage Trust dominate the bestseller lists for funds and investment trusts respectively.
“Both have tempted investors with their stellar returns by adopting the Warren Buffett-esque investment approach of ignoring the constant flow of macroeconomic data and the noise of the City to invest in a relatively small number of companies that can withstand the test of time.
“The plight of the once popular Woodford Equity fund is a timely reminder of why investors shouldn’t follow the crowd when it comes to selecting investments. Investors should consider their attitude to risk, investment time horizon and the current make-up of their portfolio when sizing up investment prospects.”
Most bought funds and investment trusts in 2019 (in rank order)
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.