Top 10 most popular funds – July 2018

Tech still dominates investors’ favourites, but they also look for ready-made solutions.

Funds and Investment Trusts August 6, 2018 by Holly Black

Investors were looking for ready-made portfolios in July as they struggled to navigate stock market uncertainty.

Two of the Vanguard LifeStrategy fund range were among the 10 most popular funds bought through Interactive Investor in the month. These are ready-made portfolios made up of tracker funds, with differing levels of risk determined by the proportion of equity to bond exposure. The funds can have up to 20,000 underlying holdings in equities and bonds across the globe.

Risk-on investors were buying the 80% Equity and 100% Equity options, which have a greater exposure to company shares. While Vanguard LifeStrategy 80% Equity climbed from eighth place in June to fifth in July, the 100% Equity fund re-entered in eighth position.

Global equities remain something of a theme, in a sign that investors are looking for geographical diversification as they try to navigate stock market volatility.

Fundsmith Equity retained its top spot in the table, followed once more by Lindsell Train Global Equity. The two funds have long been popular with investors and have delivered consistently strong performances in recent years with their bias towards quality consumer stocks.

Terry Smith’s flagship fund, which has assets under management of £16.2 billion, has delivered a returned of 17.8 per cent over the past 12 months and a whopping 147.6 per cent over the past five years.

Meanwhile, Nick Train’s £5.1 billion global equity fund has returned 24.2 per cent over the past 12 months and 134.6 per cent over the past five years.

Also with a global remit, and holding on to fourth place for a second consecutive month, is the Baillie Gifford Global Discovery fund. The fund looks for growing businesses across the globe, with investments including Tesla and Grubhub. Indeed, it has a leaning towards tech stocks such as these and has almost two-thirds of its assets in US firms. It has returned a stellar 31.8 per cent over the past 12 months alone, and 136.4 per cent over the past five years.

The tech focus remained a theme among investors’ favoured funds in July, with Janus Henderson Global Technology and Axa Framlington Global Technology the joint ninth most-bought funds in the month.

Elsewhere, Legg Mason Japan Equity remained popular. The Money Observer Rated Fund focuses on fast-growing Japanese firms and has delivered 30.1 per cent return over the past 12 months and 188.1 per cent over the past five years.

Funds IA sector 1 yr (%) 3yrs(%)
Fundsmith Equity Global 19.6 87.7  
Lindsell Train Global Equity Global 25.1 82
Baillie Gifford British Smaller Companies UK smaller companies 3.4 25.1
Baillie Gifford Global Discovery Global 35.1 81.6
Vanguard Lifestrategy 80% Equity Mixed Investment 40-85% Shares 8.6 41.1
Legg Mason IF Japan Equity Japan 29.1 119.6
Standard Life Global Smaller Companies Global 23.3 90.5
Vanguard Lifestrategy 100% Equity Global 10.8 50.5
Janus Henderson Global Technology Tech & tel 26.7 109.7
Axa Framlington Global Technology Tech & tel 34.7 113.7

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