Most-bought investments: November 2023

• Scottish Mortgage has returned to pole position after being pushed into second place in last month's top 10 by City of London
• For the second successive month, Royal London Short Term Money Market tops the table as the most-bought investment fund among interactive investor customers
• Most of the top 10 most-bought investment trusts on ii in November pay an income, the exception being new entry – India Capital Growth

Below, experts from interactive investor examine ii investor behaviour and popular investments during the month of November. 

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Direct equities

Keith Bowman, Investment Analyst, interactive investor, explains:“Alcoholic drinks makerDiageo (LSE:DGE) became a popular buy in November following its profit warning. The FTSE 100 company whose products include Johnnie Walker whiskey and Guinness, warned of slower than expected sales for its Latin American and Caribbean region as economic headwinds had caused consumers to trade down to cheaper brands. Investors may now be focusing on Diageo’s long-term track record, with more than 15 consecutive years of growth in its dividend payment and an estimated future income yield of close to 3% a potential attraction. 

“Commercial and military aircraft engine maker Rolls-Royce Holdings (LSE:RR.) again returned to the ii most bought equities list. Under still relatively new chief executive, Tufan Erginbilgic, the FTSE 100 company in November detailed a series of medium-term financial targets that were stronger than even the most optimistic City analyst forecasts. Rolls Royce shares remain comfortably the best FTSE 100 performer year-to-date, climbing over 200%, with investors likely hoping for continued momentum.

“Mining company Glencore (LSE:GLEN) stayed popular with ii investors. In mid-November the FTSE 100 company finally struck a deal with Canadian miner Teck Resources. The deal boosted hopes that Glencore can eventually separate out its coal mining business, leaving investors able to buy just the more climate friendly business balance going forward.”

Funds 

Kyle Caldwell, Deputy Collectives Editor, interactive investor, says: “Looking at investment trust and funds land in November, it seems that although some investors are dialling down on risk, other investors are happy to take a more adventurous approach.

“L&G Global Technology Index, for example, has jumped up five places and is now in third-place position. Over the past year, this passive index fund has been benefiting from advancements in, and the future potential of, artificial intelligence (AI). The so-called Magnificent Seven technology companies have seen their share prices sizzle on the back of investors buying in to gain exposure to the trend*.

“Another adventurous strategy in favour with ii investors over November is Jupiter India. Funds have poured into Indian equities and bonds at a very rapid rate this year, often at the expense of China. Another driver is that India's stock market has been enjoying a purple patch. The S&P BSE 100 Index has been the best-performing market since Covid, up 149% from 3 April 2020 to 27 November 2023. In second place is the Nasdaq 100 index, which has gained 112%.

“India has plenty of attractions as an investment destination. It has a young population, with around a quarter of the world’s under-25s. This young population is part of an expanding middle class, which is expected to fuel economic growth in the decades to come. In addition, Prime Minister Narendra Modi’s reforms, such as the unification of taxes and demonetisation, are expected to benefit the economy.

“However, plenty of investors are still going for global exposure. With HSBC FTSE All-World Index, Vanguard LifeStrategy 100% Equity, Vanguard FTSE Developed World ex-UK Equity Index, and Vanguard FTSE Global All Cap Index, all proving popular.”

Investment trusts

Caldwell adds: “Income remains front-and-centre for many investors, in an attempt to receive some “jam today,” particularly while battling inflation. This trend is reflected in most constituents in the top 10 for November paying an income, apart from new entry into the top 10 -India Capital Growth Ord (LSE:IGC). 

“The ‘growth’ focus of India Capital Growth means it is actually the outlier in the top 10 for November, by not paying any income. Interestingly, too, India Capital Growth’s one-and three-year returns are the highest in the top 10 – no wonder it has caught the attention of ii investors.”

Top 10 most-bought investments on interactive investor in November 2023