October's 10 most-bought funds
Six of the top 10 in October were actively managed funds. This follows a record-breaking month in September, when five of the top 10 most-bought funds were index trackers, or passive funds.
CF Woodford Equity Income, run by celebrity fund manager Neil Woodford, maintained its place as Interactive Investor's most-bought fund for the 16th consecutive month.
The UK equity income fund has been the most popular fund on Interactive Investor since its launch in June 2014, helping its assets under management to swell from £1.6 billion at launch to over £7.6 billion today and making it the largest fund in its sector.
UK AND GLOBAL STARS
Old favourite Fundsmith Equity climbed six places to retake its place as second most-bought fund in October - having maintained a podium position for most of the year - while Axa Framlington Biotech climbed one place to third.
After a troubled summer in global markets, all three funds have rebounded impressively. Axa Framlington Biotech has achieved the most impressive turnaround, gaining nearly 10 per cent in the month to 31 October compared to a loss of 15 per cent in September.
Neptune UK Mid Cap re-entered the top 10 after a one-month absence as the fifth most-bought fund. Managed by the highly rated Mark Martin, Neptune UK Mid Cap is the best-performing fund in the UK all companies sector over five years with a return of 143 per cent.
Over one and three years the fund has maintained first-quartile returns; however, in the shorter term it has struggled, shedding 0.7 per cent in October compared to an average gain of more than 4 per cent from the sector.
Artemis Global Equity Income climbed three places to take the sixth place last month. The fund is a top performer over one, three and five years, but has struggled over the past six months due in part to a comparatively high weighting to Asia and emerging markets.
Making its debut in the top 10 at eighth place is Lindsell Train Global Equity. Managed by star manager Nick Train alongside Michael Lindsell, the fund is the best performer in the global sector over one year, with a return of 25.4 per cent compared to an average of just 6 per cent from its peers.
MFM Slater Growth also made its first appearance in the table for the first time since December 2014, taking 10th place. Run by boutique asset manager Slater Investments, MFM Slater Growth has put in a consistent top-quartile performance since its launch 2005, ranking as the second best-performing fund over 10 years with a return of 334 per cent.
An individual employed by an institution to manage an investment fund (unit trust, investment trust, pension fund or hedge fund) to meet pre-determined objectives (usually to generate capital growth or maximise income) in prescribed geographic areas or investment sectors (such as UK smaller companies, technology or commodities). The manager also carries the responsibility for general fund supervision, as well as monitoring the daily trading activity and also developing investment strategies to manage the risk profile of the fund.
Generic, loosely-defined term for markets in a newly industrialised or Third World country that is in the process of moving from a closed economy to an open market economy while building accountability within the system. The World Bank recognises 28 countries as emerging markets, including Argentina, Brazil, China, Czech Republic, Egypt, India, Israel, Morocco, Russia and Venezuela. Because these countries carry additional political, economic and currency risks, investors in emerging markets should accept volatile returns. There is potential to make large profit at the risk of large losses.