Investors are still going global while Tesla has engineered its way back into the minds and portfolios of stock pickers, according to a list of the most popular funds, stocks and investment trusts bought in October.
BP remained the most-purchased stock on retail platform Interactive Investor last month, while Greencoat UK Wind was the most-bought investment trust, knocking Blackrock World Mining off the top spot.
Meanwhile, Scottish Mortgage, a favourite among MoneyWeek readers and part of the MoneyWeek investment trust portfolio, was the third most popular investment trust behind City of London.
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BP is a regular feature in the top stocks list, but has been gradually creeping up the league table over the past few months. The British oil and gas giant took fifth position in June, fourth in July, third in August and now first in September and October.
Lloyds Banking has shot from ninth to second place, while Tesla has also re-entered the list after two months out, following its better-than-expected results as well as an optimistic demand forecast for 2025.
Nvidia remains in the top-10 purchased stocks but other technology favourites such as Amazon are yet to reappear after dropping out last month.
It comes as investors have become more bearish about technology with many questioning whether the AI frenzy has been overdone.
Similarly, tech-focused fund Allianz Technology has now joined Polar Capital Technology in falling out of the top 10.
Terry Smith's Fundsmith Equity dropped out of the top 10 most-bought funds again, while Vanguard LifeStrategy 80% Equity was the most popular fund among investors during September.
Top funds ranked
Technology stocks may not be the top purchases but investors appear to be accessing the sector through global funds to gain more diversification.
The L&G Global Technology Index Trust has jumped one spot this month up to third place when it comes to the most-bought funds.
The Vanguard LifeStrategy 80% Equity Fund remains the most popular among investors.
Meanwhile, Terry Smith's Fundsmith Equity couldn't hold its place in the top 10 after re-entering last month.
"It’s clear that many investors are long-term bulls on tech shares and continue to favour global and US index funds with high weightings to the sector," says Kyle Caldwell, funds and investment education editor at Interactive Investor.
"The typical global index fund has around 20% in the ‘Magnificent Seven’ technology companies, rising to around 33% for an S&P 500 index fund.
“Also noteworthy is the exit of Terry Smith’s Fundsmith Equity fund from the top 10 for October, given that it returned to the top 10 in September. Smith, like many other stock pickers, has been facing into the performance headwind of being ‘underweight’ the Magnificent Seven. The fund’s fall down our ranking coincides with performance lagging the wider global market over the past couple of years.”
Top 10 most-purchased funds
| Rank | Top funds |
|---|---|
| 1 | Vanguard LifeStrategy 80% Equity |
| 2 | Royal London Short Term Money Market |
| 3 | L&G Global Technology Index Trust |
| 4 | Jupiter India |
| 5 | HSBC FTSE All-World Index |
| 6 | Fidelity Index World |
| 7 | Vanguard LifeStrategy 100% Equity |
| 8 | Vanguard LifeStrategy 60% Equity |
| 9 | Vanguard FTSE Global All Cap Index |
| 10 | Vanguard US Equity Index |
Top investment trusts ranked
Allianz Technology's exit from the top 10 purchased investment trusts shows how some investors are becoming slightly more cautious on the technology sector, adds Caldwell. Many are looking to cast their nets wider to take advantage of other opportunities
Scottish Mortgage remains popular with investors in third place.
Top 10 most-purchased trusts
| Rank | Top trusts |
|---|---|
| 1 | Greencoat UK Wind |
| 2 | City of London |
| 3 | Scottish Mortgage |
| 4 | JP Morgan Global Growth & Income |
| 5 | Alliance Witan |
| 6 | NextEnergy Solar Fund |
| 7 | Supermarket Income REIT |
| 8 | F&C Investment Trust |
| 9 | 3i Group |
| 10 | BlackRock World Mining |
Top stocks ranked
Tesla managed to find a place back in the top 10 during October, while homegrown favourites like BP, Rolls Royce Lloyds Banking Group and GSK remain popular.
Investors also appear to be attracted to income, with dividend yields of more than 7% at life assurers Aviva and Legal & General.
“A 4% retreat for BP shares during the month helped tempt buyers," says Keith Bowman, equity analyst at Interactive Investor.
He adds: "Late October results showed pressured oil refining margins, with management’s commitment to review, and potentially lower, shareholder returns via share buybacks come 2025 adding to weakness.
“Electric car maker Tesla detailed forecast-beating results as well as an optimistic demand forecast for 2025. That came in contrast to more downbeat updates from the likes of VW, propelling Tesla back into the most-bought list.
“Elsewhere, disappointing vaccine sales for pharma GSK offset forecast-beating profits, offering a potential discounted buying opportunity."
Top 10 most-purchased stocks
| Rank | Top stocks |
|---|---|
| 1 | BP |
| 2 | Lloyds |
| 3 | Nvida |
| 4 | Tesla |
| 5 | GSK |
| 6 | MicroStrategy |
| 7 | Legal & General |
| 8 | Rolls Royce |
| 9 | Aviva |
| 10 | Abrdn |
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