Your favourite investments in September

We run through which stocks, funds and trusts interactive investor customers have been buying.

• Tech funds out
• UK funds noticeable in absence

In September, LF Blue Whale Growth catapulted into the top 10 fund bestsellers list on interactive investor, the UK’s second-largest direct-to-consumer investment platform. It coincided with the fund’s third anniversary and is the first time the fund has made ii’s top 10. 

Baillie Gifford maintained its dominance, accounting for five of the top ten fund purchases.

LF Blue Whale, a global fund which aims to achieve capital growth over any five-year period after all costs and charges have been taken, climbed seven places from 16th place in August to ninth position last month, after narrowly missing out on a top 10 spot in July (ranking 12th).

More broadly, customers of interactive investor continued to favour global solutions, accounting for nine out of the 10 bestselling funds last month. The only country specialist was a US Fund, with the UK only noticeable in its absence. 

There is no change at the top of the table, with Fundsmith Equity, Baillie Gifford American and ethical fund Baillie Gifford Positive Change rooted in first, second and third place, respectively.

Three more Baillie Gifford funds also made the top 10 list: Baillie Gifford Global Discovery in fifth, Baillie Gifford Long Term Global Growth in sixth, and Baillie Gifford Managed in seventh position. In all, funds by the Scotland-based asset manager make up five out of the top 10 fund purchases.

Vanguard LifeStrategy 80% Equity and the 60% Equity fund are once again the only two funds using passive strategies on the list of fund bestsellers, in fourth and eighth place, respectively. Rathbone Global Opportunities completes the top 10.

Tech funds fell out of the picture, and L&G Global Technology Index Trust has dropped off the list from last month, although it was a different story in the investment trust sector.

Investment trusts

Whilst tech funds have fallen out of favour, when it comes to investment trusts, Allianz Technology (LSE:ATT) and Polar Capital Technology (LSE:PCT) each made the top 10. Meanwhile, the UK was not completely left out in the cold weather, although City of London (LSE:CTY) cut a lonely figure as the only UK focussed investment trust in September.

Baillie Gifford Shin Nippon (LSE:BGS) (fourth place), Baillie Gifford US Growth Trust (LSE:USA) (seventh) and Fidelity China Special (LSE:FCSS) (ninth) are the three new faces on the top 10 list of most-purchased investment trusts in September, replacing BlackRock World Mining Trust (LSE:BRWM), Worldwide Healthcare (LSE:WWH) and Personal Assets Trust (LSE:PNL). 

There is no change at the head of the table with Scottish Mortgage (LSE:SMT), also managed by Baillie Gifford, once again securing the number-one spot. It boasts a record of being the most-purchased investment trust on the interactive investor platform every month bar one since February 2014.

Teodor Dilov, Fund Analyst, interactive investor, says: “The biggest development from last month is the ascendency of LF Blue Whale. The fund is relatively young - it recently celebrated its three-year anniversary - and has started to gain some real traction among our customers. The fund’s strong performance is likely to be a significant contributing factor to its spike in popularity. 

“While our customers continue to favour collective investments that offers global diversification, it is interesting to see that there is still no room for Lindsell Train Global Equity, which had often tussled with Fundsmith Equity for the number-one spot in the not-too-distant past.”

Equities

Commenting on the bestselling equities, Keith Bowman, Equity Analyst, interactive investor, says: “Tesla's (NASDAQ:TSLA) 400% rise year-to-date continues to attract the attention of investors. The contrast with 20% plus falls for more traditional rivals elevates the debate over the future for the automotive industry. 

“The pandemic-devasted travel industry remains front and centre for many investors. Descents in share prices of over 75% for icon brands such as Rolls-Royce (LSE:RR.) and British Airways owner IAG (LSE:IAG) year-to-date leave many investors sensing opportunity. Fund raisings by both will bolster balance sheets, but still leave the question of how long Covid-19 can significantly disrupt operations for.

“Tech giant Apple (NASDAQ:AAPL) still, for many investors, typifies US innovation and growth. The phone and PC mammoth remains a pandemic winner. Work and study from home initiatives globally have helped fuel demand for its wide selection of products, helping to push a near 60% gain in the share price year-to-date.”

Top 10 most-bought funds, investment trusts and equities on interactive investor in September 2020