The top 10 most popular investment funds – November 2017

Passive trackers and star manager funds continued to be favoured by investors, M

Passive trackers and star manager funds continued to be favoured by investors, Marina Gerner runs through the top 10.

Once again, Money Observer Rated Fund Fundsmith Equity took the top position in the most-bought funds on Money Observer's sister website Interactive Investor in November.

The fund has over half of its assets in US equities and is managed by highly regarded investor Terry Smith. Ever since it toppled CF Woodford Equity Income almost two years ago, it has been the most-bought fund in our list. 

Money Observer Rated Fund Lindsell Train Global Equity came second. Jointly managed by Michael Lindsell and Nick Train, the fund returned 5.6 per cent over six months and 29.3 per cent over one year.

Two passive trackers took third and fourth spot, which indicates a wider trend to opt for low-cost tracker funds.

Vanguard LifeStrategy 80% Equity came third – it focuses on North American equities, UK equities and European ex UK equities as well as global bonds. It was followed by passive equity tracker Vanguard LifeStrategy 100% Equity in fourth place.

Baillie Gifford Greater China went up three spots to become the fifth most-bought fund in November following the Communist Party’s national congress in October, where President Xi Jinping continued to consolidate his power. 

As China transforms its economy from export-led model to a slower-paced economy fuelled by consumption, it faces many challenges: from environmental pollution to a lack of social services for its growing urban population. However, the Chinese economy has been more resilient than expected this year, and has defied pundits who predicted that it would suffer a painful slowdown.

Neil Woodford's eponymous open-ended fund – CF Woodford Equity Income – took sixth place in November. The UK equity income fund lost 8.8 per cent over six months, and it gained 2.7 per cent over one year. 

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Woodford continues to argue that his bets on domestic stocks will eventually pay off, and thanks to his popularity the fund remains in our league table despite underperforming the Investment Association's UK equity Income sector, which gained 12.8 per cent over one year.

It was closely followed by Money Observer Rated Fund Marlborough UK Micro Cap Growth. This fund is run by Giles Hargreave, a highly experienced small cap specialist. A considerable proportion of the portfolio is invested in companies of less than £150 million.

Jupiter India has slipped two spots to eighth position. The fund lost 1.1 over the last six months but gained 18 per cent over one year. India’s ongoing tax reforms are seen as a positive development for the economy. In a nutshell prime minister Narendra Modi is aiming to boost consumption in the economy, improve the country’s infrastructure (including building new roads and improving transport links), as well as attempting to make India a more accessible and attractive place for foreign investors to put their money.

Artemis Global Income was the ninth most-bought fund in November. Europe accounts for around 45 per cent of the fund, while on a sector level financials are in favour, accounting for 40 per cent. In a recent interview with Money Observer Jacob de Tusch-Lec, who is lead manager on the fund, explained he is currently favouring cyclical businesses. 

And finally, the tenth place was taken by another tracker, Vanguard FTSE Developed World ex UK, which has 60.7 per cent in US equities and 9.9 per cent in Japanese equities.



Rank

Fund

IA
sector

Change
since Oct

Total
return 1m to 3 Dec
(%)

Total
return 3 years 3 Dec
(%)

1

Fundsmith Equity

Global

--

0.6

78.8

2

Lindsell Train Global Equity

Global

--

2.3

77.8

3

Vanguard LifeStrategy 80% Equity

Mixed
Investment 40%-85% Shares

--

-0.5

37.2

4

Vanguard LifeStrategy 100% Equity

Global

--

-0.8

44.2

5

Baillie Gifford Greater China

China

+3

-0.9

92.7

6

CF
Woodford Equity Income

UK
Equity Income

-1

-3.5

17.4

7

Marlborough UK Micro Cap Growth

UK Smaller Companies

--

-0.4

73.3

8

Jupiter India

Specialist

-2

-3.4

57.3

9

Artemis Global Income

Global
Equity Income

--

-0.7

42.5

10

Vanguard
FTSE Developed World ex UK

FTSE
Developed ex UK

--

-0.1

51.9

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