There are signs investors are becoming more cautious in their outlook for equity markets, following the arrival of Investec Global Gold and Vanguard LifeStrategy 20% Equity into our league table of the 10 most popular funds in August (based on data from Money Observer’s parent company interactive investor).
Despite repeated warnings over the past couple of years from various investment commentators that the strong performance US equities have enjoyed since the financial crisis is looking long in the tooth, the S&P 500 index has continued climbing.
June saw little change to the line-up of the most bought funds, according to data provided by interactive investor, Money Observer’s parent company.
As in the previous month, the table was dominated by active funds run by respected fund managers or the various passive strategies offered by Vanguard.
There’s little change in our top 10 most popular fund league tables, with investors continuing to either focus their sights on fund managers with solid reputations or instead go down the passive fund route.
Since the global financial crisis, passive funds have enjoyed a surge in popularity that shows no signs of cooling.
At the end of March, the amount held in tracker funds stood at £194 billion, which represents a 16.1% overall share of industry funds under management.
Although valuations for UK shares are at historically low levels as Brexit uncertainty continues to cast a dark shadow over our home market, investors are not attempting to buy the dip and are instead continuing to favour global funds.
Seven of the top 10 most popular funds in the month of March invest globally, with four being actively managed.
From both a growth and an income perspective, the UK stockmarket is as cheap as chips, but retail investors continue to shy away, data from our parent company interactive investor shows.
There’s little movement in our top 10 most popular funds league table, with global equities remaining the most popular choice among investors of our parent company interactive investor.
In total, six funds in the table adopt a global approach, up from four a year ago.
It was a year to forget for active fund managers, with the vast majority ending the year in the red.
UK equity funds were a case in point. Number-crunching by Money Observer using FE Analytics found that only six UK equity funds out of 406 managed to turn a profit in 2018. This covered all UK equity funds housed in the IA UK all companies, UK equity income and UK smaller companies fund sectors.