Most-bought investments: April 2021

We reveal the most-popular funds, trusts and shares on the interactive investor platform.

Baillie Gifford’s dominance on interactive investor’s fund bestsellers list waned in April for the second month in a row amid a resurgence in popularity of passive funds from the Vanguard stable.

Funds managed by the Scotland-based asset manager, accounted for three of the top 10 most-bought funds last month – down from seven in February and five in March. Baillie Gifford American ranks highest in third position, ahead of Baillie Gifford Positive Change in fifth and Baillie Gifford Global Discovery in ninth position.

Meanwhile, Vanguard funds make up four of the top 10, with Vanguard LifeStrategy 80% Equity in second position, the 60% Equityoption in fourth, Vanguard US Equity Index in sixth and Vanguard LifeStrategy 100% Equity in seventh.

The two new entrants to the list, Marlborough Nano Cap Growth which invests in small-cap UK stocks, andArtemis US Smaller Companies, rank in eighth and 10th positions, respectively. They replace Baillie Gifford China and Baillie Gifford Pacific on from March’s instalment. 

Fundsmith Equity maintains its place at the helm.

When it comes to investment trusts, UK-focused City of London (LSE:CTY) jumped five places into second position as investor sentiment on the region improves.

Smithson (LSE:SSON) and Alliance Trust (LSE:ATST) are new names on the list from March and are in ninth and 10th positions respectively, replacing Pacific Horizon and JP Morgan China Growth and Income.Scottish Mortgage (LSE:SMT) once again maintained its place at the top of the list.

Dzmitry Lipski, Head of Fund Research, interactive investor, says: “The return of passive strategies in the form of the Vanguard’s Life Strategy range, at the expense of Baillie Gifford, is striking, with investors apparently cooling towards active funds.

“Baillie Gifford’s counted among three of the top 10 most-bought funds in April, down from seven in February and five in March, although the Edinburgh-based asset manager continues to be among the most popular names on the platform.    

“On the investment trusts side, it is no surprise that Scottish Mortgage continued to be the most-bought strategy in April considering its stellar long-term performance. The revival of UK equities as well as the increased appetite for stocks that offer attractive valuations could have been the drivers for the uptick in popularity of City of London.

“Fidelity China Special Situations also continued to be the preferred closed-ended vehicle for investors to gain exposure to the emerging markets and more specifically the Chinese recovery theme.”

Commenting on the most-bought equities, Keith Bowman, Equity Analyst, interactive investor, says: “Lloyds Banking Group and its strong exposure to the UK economy continued to generate investor interest. Recent quarterly results and the writing back of previous pandemic-related bad debt provisions have aided positive investor sentiment.

“The commencement of a new share buyback programme at oil major BP proved a highlight within its recent results. A more than doubling of the oil price since pandemic-induced lows back in March last year helped boost profits, while cash generation and asset disposals are underpinning a focus on reducing group debt.

“Air travel-related companies such as Rolls-Royce and IAG remain at the centre of pandemic uncertainty for investors. Vaccine roll-outs and easing virus restrictions in the likes of the UK and the US are being countered by rising case numbers and the growing crisis in India, with the argument that the crisis is not over until it’s over globally, staying in investors' thoughts. First-quarter results from IAG are expected on 7 May.”

Top 10 most-bought investments on interactive investor in April 2021