The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investment platform.

Wondering what the most popular funds to invest in right now are? Investors are pumping more money into passive funds, blue chips and income investment trusts. Other than Terry Smith’s Fundsmith Equity, active funds are taking the back seat. 

For stocks, Harland & Wolff has become a favourite with a potential Ministry of Defence contract as investors seek opportunities.

Here are the most purchased funds, stocks and investment trusts by investors in October.

The most popular funds for investors

According to fund supermarket interactive investor, these are the 10 most popular funds bought on its platform in November 2022. 

  1. Fundsmith Equity
  2. Vanguard Lifestrategy 80% equity
  3. Vanguard Lifestrategy 100% equity
  4. Vanguard US Equity Index
  5. Vanguard Lifestrategy 60% equity
  6. Vanguard FTSE Global All Cap Index
  7. Vanguard FTSE Developed World Ex UK Equity
  8. HSBC American Index Fund
  9. HSBC FTSE All World Index
  10. Fidelity Index World

Passive funds continue in popularity, with Vanguard again dominating the top 10 with six funds in the list. 

Terry Smith’s Fundsmith Equity fund is the only active fund. Though it was the most popular fund, investors on the whole remain cautious about active funds as market uncertainty continues. 

The 10 most popular stocks purchased by investors

These were the most popular stocks bought on the platform in November 2022. 

  1. Vodafone 
  2. Tesla
  3. Glencore
  4. Cineworld 
  5. Harland & Wolff
  6. Boohoo 
  7. Lloyds Banking Group
  8. BT Group
  9. GSK 
  10. BP

When it came to stocks, Vodafone is the new best-buy favourite jumping up from sixth position, followed by Tesla, which made its way back into the top 10 again in October. For November, Harland & Wolff and BT are new in the top 10 of favourites.

Cineworld is also back on the most bought equities list for November.

Keith Bowman, senior investment analyst at interactive investor, says: “A share price fall of close to 10% for telecoms mammoth Vodafone left investors taking interest. Half year results downgrading its annual profit hopes – given its ongoing battle with rising costs, including those for energy – set the share price sliding.

“Similarly, interim results from BT Group also failed to inspire, leaving its share price down 6% over the month. An acceleration in broadband line losses and weakness for its corporate enterprise business accompanied group wide plans to cut costs even further.

“Historic dividend yields of over 6% for both Vodafone and BT continue to offer investor attraction.

“Shares for banking favourite Lloyds rallied by more than 10% during November. An Autumn Statement attempting to reverse damage from the previous mini Budget helped calm mortgage rates, for which Lloyds is a big provider, aided by expectations that future global interest rate rises may now prove less aggressive.

“Hopes of an easing in Chinese pandemic restrictions and a freeing of its economy helped keep potential beneficiaries such as the miners and Glencore in the eye of investors. Its shares rose by almost 13% over the month.”

The most popular investment trusts for investors 

According to interactive investor, these were the most popular investment trusts purchased via its platform in November 2022. 

  1. Scottish Mortgage Investment Trust
  2. City of London Investment Trust
  3. F&C Investment Trust
  4. Greencoat UK Wind
  5. Blackrock World Mining
  6. Vinacapital Vietnam Opportunity
  7. Alliance Trust
  8. Polar Capital Technology
  9. Ruffer Investment
  10.  NewRiver Reit 

Scottish Mortgage Investment Trust continues to hold its top spot, despite falling by around 40% this year. Scottish Mortgage invests in businesses aiming to deliver high growth in the years to come and has consistently occupied the top spot since June 2019 – the recent performance woes have certainly not dented its popularity.

“The other trust that’s been in the top 10 all year is City of London, which predominantly invests in FTSE 100 listed dividend-paying companies. The trust, which has been managed by Job Curtis since 1991, has raised its dividend for 56 consecutive years. It offers a high dividend yield today, of around 4.9%.”

BlackRock World Mining, VinaCapital Vietnam Opportunities, Polar Capital Technology, and NewRiver Reit are new entries in the best buy list.

• The author of this article has holdings in the Fundsmith Equity fund, shares in Lloyds, Scottish Mortgage Investment Trust and Alliance Trust.

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