November's 10 most-bought funds dominated by Moneywise First 50 picks

Marina Gerner
6 December 2016
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The top position in the most-bought funds on Moneywise’s parent company Interactive Investor has been taken by Moneywise First 50 Fund Fundsmith Equity for the eighth consecutive month. In total, seven of the 10 most-bought funds are part of our First 50 selection.

Managed by highly regarded investor Terry Smith, the fund has over half of its assets in US equities. Eight months ago it toppled CF Woodford Equity Income and has remained the most-bought fund ever since.

The names in the 10 most-bought funds in November remain unchanged from October. Neil Woodford's eponymous open-ended fund, which launched in June 2014, took second place.

The UK equity income fund shed 3% over one month to 2 December and gained 1.4% over six months. It remains popular despite under performing the Investment Association's UK equity income sector, which gained 4.1% over six months.

Caution prevails

Another first 50 fund, Lindsell Train Global Equity was third on the list. Jointly managed by Michael Lindsell and Nick Train since its launch in March 2011, the fund returned 11% over six months to 2 December.

Half of the most-bought funds in November are passive ones. The fourth place in the list was taken by Vanguard LifeStrategy 80% Equity, which focuses on North American equities, UK equities and European ex UK equities as well as global bonds.

Artemis Global Income was the fifth most-bought fund in November. It benefits from a global spread as one third of its holdings are in US equities, about 13% in UK equities and 8% in German equities.

 

It was closely followed by Vanguard LifeStrategy 60% Equity, which dropped one spot to take seventh place in November's list, while Vanguard LifeStrategy 100% Equity took eighth place.

The popularity of the 60% and 80% equity tracker over the 100% one could indicate that investors are becoming more cautious as they choose to move to a higher proportion of bonds in their tracker funds.

The sixth position was taken by Jupiter India, which climbed one place. The fund lost 13.1% over the last month but has gained an astonishing 112% over the last three years.

With increasing uncertainty around US president-elect Donald Trump's policies, looming Brexit negotiations, and political change across Europe, investors have been turning to emerging market funds over the last month.

 

In India specifically, new tax reforms are seen as a positive development for the economy.

The ninth place in the top 10 was taken by HSBC FTSE All Share Index, which shed 2.1% over one month. The 10th spot was taken by Vanguard FTSE Developed World ex UK, which has 62% in US equities and 10% in Japanese equities.
 

November's 10 most-bought funds     
RankFundIA sectorChange from October1m total return to 2 Dec (%)3yr total return to 2 Dec (%)
1Fundsmith Equity*Global--5.971.9
2CF Woodford Equity Income*UK equity income--3n/a
3Lindsell Train Global Equity*Global--6.258.4
4Vanguard LifeStrategy 80% EquityMixed investment 40-85% shares--1.133
5Artemis Global Income*Global equity income--1.242.5
6Jupiter IndiaSpecialist1-13.1111.9
7Vanguard LifeStrategy 60% Equity*Mixed investment 40-85% shares-1-1.329
8Vanguard LifeStrategy 100% Equity*Global--0.937.1
9HSBC FTSE All Share IndexUK all companies--2.114.3
10Vanguard FTSE Developed World ex UK*Global--0.547.5

* Denotes a Moneywise First 50 fund.

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