The top 10 most popular investment funds – August 2017

The top 10 most popular investment funds – August 2017

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

The fund has over half of its assets in US equities, and 19 per cent in UK equities. It is managed by the highly regarded investor Terry Smith

Eight of the ten most-bought funds remain unchanged from July. Second on the list was Money Observer Rated Fund Lindsell Train Global Equity. Jointly managed by Michael Lindsell and Nick Train, the fund returned 13.7 per cent over six months and 22.9 per cent over one year.

Neil Woodford's eponymous open-ended fund, CF Woodford Equity Income, took third place. But while it continues to be the second most popular fund, it was also one of the ten worst performing funds in the Investment Association’s sectors in August, losing 4 per cent over the month.

-Neil Woodford: ‘I'm very sorry for the poor performance’

Woodford hopes that sectors such as biotech will eventually pay off. Thanks to his popularity the fund remains in our top 10 despite underperforming the UK equity income sector over various time frames.

The fourth place in the list was taken by passive fund Vanguard LifeStrategy 80% Equity, which focuses on US, UK and European ex UK equities as well as global bonds. Fifth spot was taken by another passive fund, Vanguard LifeStrategy 100% Equity, which gained 2.8 per cent over six months.

It was closely followed by Jupiter India, which gained 10.6 per cent over the last six months and 85.3 per cent over the last three years. The ongoing tax reforms are seen as a positive development for the dynamic Indian economy.

Artemis Global Income was the seventh most-bought fund in August, during which time it gained 2 per cent and maintained its top-quartile ranking within the global equity income sector after a period of underperformance. It benefits from a global spread as one third of its holdings are in US equities, 16 per cent in Italian equities and 6.9 are in UK equities.

Commenting on Artemis Global Income, Fund Expert’s Brian Dennehy says: ‘Growth has come from big tech companies in the US, which the manager cannot hold as they don’t pay dividends. Given the strong run these already expensive stocks have enjoyed, the manager is cautious on the outlook for the remainder pf 2017.’  

It was closely followed by Marlborough UK Micro Cap Growth, which went up three places to take eight spot in August.

Meanwhile, passive fund Vanguard LifeStrategy 60% Equity, which has 26 per cent in US equities, 19 per cent in global bonds, and 15 per cent in UK equities, went down one place to ninth spot. And finally, the tenth spot was once again taken by Vanguard FTSE Developed World ex UK, which has 61 per cent in US equities and 9.9 per cent in Japanese equities.

It is worth pointing out that four of the top 10 most-bought funds were passive ones, in keeping with a continuing wider trend to opt for low-cost tracker funds


Rank


Fund

IA sector

Change since
July

Total return
1m to
31 August
(%)

Total return
3 years to
31 August
(%)

1

Fundsmith Equity

Global

--

2.1

98.4

2

Lindsell Train
Global Equity

Global

--

-4

25.9

3

CF Woodford
Equity Income

UK equity income

--

2.2

40.3

4

Vanguard
LifeStrategy
80% Equity

Mixed Investment
40%-85% Shares

--

2.4

47.6

5

Vanguard
LifeStrategy
100% Equity

Specialist

--

1.3

93.2

6

Jupiter India

Global

--

1.9

97.8

7

Artemis Global
Income

Global Equity Income

--

2

47.2

8

Marlborough
UK Micro Cap
Growth

UK Smaller Companies

+3

1.9

59

9

Vanguard
LifeStrategy
60% Equity

Mixed Investment
40%-85% Shares

-1

2

33.27

10

Vanguard FTSE
Developed
World ex UK

FTSE Developed
ex UK

--

2.5

57.9

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