The top stocks and funds to buy according to DIY investors

Every month, we look at the top funds, stocks and investment trusts among DIY investors. The investments they pick offer an insight into how the markets are faring, and where individual investors see the best opportunities.

Whether you are a beginner investor or a seasoned stock-picker, knowing where others in your position are looking can be a valuable source of insight and inspiration.

Despite pullbacks in both silver and gold during October, DIY investors continued to flock towards the precious metals.

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An improving geopolitical outlook as well as strong corporate results helped to drive investor optimism throughout the month.

“October was a strong month for most asset classes,” said Alex Watts, senior investment analyst at Interactive Investor. “Markets digested positive news: hopes of improved US-China relations given Presidents Trump and Xi’s meeting, while over 80% of Q3 earnings across the S&P 500 so far beat earnings per share estimates.”

The Federal Reserve’s 25 basis point interest rate cut also spurred growth stocks. “Most major equity regions and sectors rose, and growth convincingly led value across developed markets, with tech and comms driving indices,” said Watts.

Money market funds have also been popular among investors seeking cash-like returns from within a stocks and shares ISA. Both Interactive Investor and Fidelity International’s Personal Investing platform saw a trend towards cash and money market funds such as Royal London Short Term Money Market Fund.

“Investors are clearly staying liquid while the Bank of England holds interest rates steady at 4%,” said Ed Monk, pensions and investment specialist at Fidelity International.

September’s top stocks for DIY investors

These were the most-bought equities among DIY investors during October:

^{Source: Interactive Investor, Fidelity International}

Once again, Rolls Royce (LON:RR.) is a DIY investor favourite stock among investors on Interactive Investor, though its share price was little changed between the start of the month and the end.

Most of the Magnificent Seven announced results during the month, and investors on Interactive Investor were particularly keen to pile into Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), Meta (NASDAQ:META) and Amazon (NASDAQ:AMZN).

Advanced Micro Devices (NASDAQ:AMD) surged on news of a deal with OpenAI, with the semiconductor giant’s stock gaining 61% during the month.

DIY investors also bought the dip on discount retailer B&M (LON:BME) across both platforms.

“Within the FTSE 250, B&M European Value Retail shares have fallen by around 50% over the past six months, prompting opportunistic investors to buy its shares at a discount,” said Victoria Scholar, head of investment at Interactive Investor.

The top funds and ETFs for DIY investors in October

These were the funds and ETFs that most DIY investors bought on Interactive Investor during October:

^{Source: Interactive Investor.}

Meanwhile, these were the most-bought funds on Fidelity:

^{Source: Fidelity International.}

Money market funds were popular on both platforms, with Royal London Short Term Money Market Fund and Legal, Artemis Global Income and General’s Cash Trust making the top ten list on both platforms.

“What’s notable this month is the growing spread of providers attracting flows within the cash category,” said Monk. “Alongside the long-standing favourites, cash funds from BlackRock and Aberdeen also featured among the most-bought” on Fidelity Personal Investing.

Ninety One Global Gold Fund also appeared on both lists, underscoring investor appetite for gold funds during the month. On Interactive Investor, gold and silver ETCs took the two top spots for passive funds.

“Precious metals remained firmly on investors’ radars, though a slight reduction in exposure compared to September,” said Monk.

October's top investment trusts for DIY investors

DIY investors on picked out these investment trusts as their favourites during October:

^{Source: Interactive Investor, Fidelity International}

There is less overlap on the investment trusts that investors favoured on each platform, though Temple Bar appeared on both lists.

Investors do seem to have used investment trusts in part to diversify away from the US and towards Asia during October, with investment trusts focusing on investing in China, Japan and other Asian markets featuring on both lists.

Read our explainers on investment funds and the best investment trusts for beginners for more information and inspiration for your portfolio.