February's 10 most-bought funds: seven are from Moneywise First 50 Funds

Marina Gerner
2 March 2017
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Out of last month’s ten most-bought funds on our sister website Interactive Investor, seven of them are part of the Moneywise First 50 Funds list  – and the top one, for the 11th consecutive month, is Fundsmith Equity.

The fund is managed by highly regarded investor Terry Smith and has over half of its assets in US equities. It's been the most-bought fund ever since it toppled CF Woodford Equity Income in this list, which lies at number two. This fund, managed by star manager Neil Woodford, is also one of our First 50 Funds.

The CF Woodford Equity Income fund gained 4% over one month to 28 February, while gaining 9.9% over one year.

Underperformance

Thanks to the popularity of Neil Woodford and his long-term view on sectors such as biotech - which he hopes will pay off eventually - the fund remains hugely popular despite underperforming the Investment Association's UK equity income sector, which gained 14.9% over one year.

Exactly half of the most-bought funds in February follow a passive strategy. The third place in the list was once again taken by Vanguard LifeStrategy 80% Equity, which focuses on North American equities, UK equities and European ex UK equities as well as global bonds.

It was closely followed by Vanguard LifeStrategy 100% Equity, another Moneywise First 50 Fund, which climbed up one spot to take the fourth position in January's list.

Yet another First 50 Fund, Lindsell Train Global Equity, dropped by one spot to be fifth on the list. Jointly managed by Michael Lindsell and Nick Train since its launch in March 2011, the fund returned 5.3% over six months to 28 February and 24.5% over one year.

Artemis Global Income, which is also a Moneywise pick, remained on the sixth place of the most-bought fund in February. 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.

The seventh position was taken by Vanguard FTSE Developed World ex UK, which climbed up one spot. It has 62% in US equities and 10% in Japanese equities and is, as you may have guessed, part of our First 50 Funds.

Jupiter India, dropped by one spot to be the eight most-bought fund in February's list. It’s gained 4.3% over the last month and is up 133.9% over the last three years.

With this year's looming Brexit negotiations, uncertainty around US politics, as well as potential political change across Europe, investors have been turning to emerging market funds. In India specifically, new tax reforms are seen as a positive development for the economy.

Ninth place was taken by Vanguard LifeStrategy 60% Equity, the final entry in this list which is a member of our First 50 Funds, which returned 2.3% over one month and 20.9% over one year. And lastly, the 10th place was taken by another tracker, HSBC FTSE All Share Index, which gained 2.4% over one month.


February's ten most-bought funds on Interactive Investor platform

RankFundIA sectorChange since JanuaryTotal 1m return to 28 Feb (%)Total 3yr return to 28 Feb(%)
1Fundsmith Equity*Global--6.193.7
2CF Woodford Income*UK equity income--4n/a
3Vanguard LifeStrategy 80% EquityMixed investment 40-85% shares--2.541.5
4Vanguard LifeStrategy 100% Equity*Global12.848.2
5Lindsell Train Global Equity*Global-15.371.1
6Artemis Global Income*Global Equity Income--1.752.1
7Vanguard FTSE Developed World ex UK*Global13.161.1
8Jupiter IndiaSpecialist-14.3133.9
9Vanguard LifeStrategy 60% Equity*Mixed investment 40-85% shares--2.335
10HSBC FTSE All Share IndexUK all companies--2.419.9

* indicates a Moneywise First 50 fund.

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