The top 10 most popular investment funds – October 2017

Terry Smith’s Fundsmith Equity has once again taken top position in our most-bought funds league table.

Smith has over the past five years returned a handsome 179 per cent, well ahead of the average global fund return of 90 per cent.

Fundsmith Equity is by far the most-popular fund with users of our sister website Interactive Investor with the number of purchases in October nearly twice as many as its nearest rival in second place: Lindsell Train Global Equity.

In third position is the passively managed Vanguard LifeStrategy 80% fund. As such, there has been no change in the top three rankings in our most-bought funds league table since September.

Lindsell Train Global Equity, which occupies second position for the fifth consecutive month, was launched in 2011 by Michael Lindsell and Nick Train. Their aim is to run the money of their clients in the same way they would run their own money. They place an emphasis on the long term, investing in established franchises and businesses that have demonstrated steady success over time. Over the past month the fund has returned 3.5 per cent, and over the past three years has posted gains of 86.9 per cent.

Vanguard LifeStrategy 80% Equity fund has remained in third position in our table for the second month running. The tracker fund, as the name suggests, holds 80 per cent of its money in shares, with the remainder in bonds and cash.

Following close behind, Vanguard LifeStrategy 100% Equity has ascended to the fourth position. This shift has pushed Neil Woodford down by one place. His CF Woodford Equity Income fund has had a summer to forget after suffering one disaster after another. The majority of fund analysts, though, are keeping the faith. 

Vanguard LifeStrategy 100% Equity completes the top five. On a three year timescale the passive fund has enjoyed the upper hand over the majority of active funds, returning 49.2 per cent versus the average global fund return of 47.1 per cent.

Jupiter India has remained in sixth place since July, with a total return of 8.5 per cent over the last month, and 77.5 per cent on a three year view. The fund manager at the helm - Avinash Vazirani – follows the ‘Garp’ (growth at a reasonable price) style of investing.

Moving up the table into seventh place is Marlborough UK Micro Cap Growth. The fund, overseen by Giles Hargreave and Guy Field, invests in companies that operate in niche markets, those that are market leaders and do not have too many competitors to worry about.  Ranking eighth is Baillie Gifford Greater China. This fund is not only a fresh sight at eighth place, but a new appearance in the table itself. Over the past month, Baillie Gifford Greater China has had a return of 7.1 per cent, and over the past three years has returned 98.2 per cent. This is the highest return over three years out of all the funds in this month’s table.

Artemis Global Income, managed by Jacob de Tusch-Lec, has dropped by two places since September. In an interview with Money Observer, de Tusch-Lec explains why he is betting big on bank shares returning to form ten years on from the financial crisis. 

Completing the top 10 is Vanguard FTSE Developed World Ex UK, another new entry. The fund has 60 per cent of its assets in US shares, a market that has enjoyed a stellar run over the past year since US electorate shocked most pundits and commentators around the world by electing Donald Trump to the White House.   


Rank

Fund

IA Sector

Change since September

Total return 1m to 6 November

Total return 3 Years to 6 November

1

Fundsmith Equity

Global

--

5.8

90.9

2

Lindsell Train Global Equity

Global

--

3.5

86.9

3

Vanguard Life Strategy 80% Equity

Mixed Investment 40%-85% Shares

--

2.8

41.2

4

Vanguard Life Strategy 100%

Global

+1

3.4

49.2

5

CF Woodford Equity Income

UK Equity Income

-1

0.4

26.8

6

Jupiter India

Specialist

--

8.5

77.5

7

Marlborough UK Micro Cap Growth

UK Smaller Companies

+1

3.7

76.1

8

Baillie Gifford Greater China

China/Greater China

New entry

7.1

98.2

9

Artemis Global Income

Global Equity Income

-2

2.9

48.2

10

Vanguard FTSE Developed World Ex UK

FTSE Developed Ex UK

New entry

3.8

57.2

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