The top investment funds to invest in
Hunger for Nvidia stocks remains while investors take to growth strategies as we approach the end of the tax year. We look at the top funds, trusts and stocks that investors pumped their money into during February
Investors have added more growth-focused funds and investment trusts to their portfolios in the run-up to the end of the tax year, data from investment platform interactive investor shows.
The buzz around artificial intelligence (AI) shows no sign of dying down, with Nvidia, Polar Capital Technology and L&G Global Technology Index sitting in the top 10 most bought lists.
UK banks also continue to be a focus of interest, with some posting full-year results last month.
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Here’s a rundown of the most popular funds, investment trusts and equities that investors have added to their portfolios.
The most popular funds to invest in
As we approach the end of the tax year, growth strategies are feeding through into the top 10 list as investors move to these funds.
Kyle Caldwell, collectives editor at Interactive Investor, said: “While over the past couple of years income has been in high demand, and remains popular, our top 10 most-bought funds and investment trusts now show more of a preference for growth.”
It seems investors are opting for more adventurous funds, as ii puts it. For example, Jupiter India claims the top spot in February - up from fourth place in January. Plus, L&G Global Technology Index still remains in the top three, showing investors are still keen on funds tied to AI.
But Caldwell warns: “Investors need to be aware that this is a concentrated approach, with Microsoft and Apple accounting for just over a third of the fund.”
Royal London Short Term Money Market has stayed put in fifth. It’s been in the top 10 since April 2023.
- Jupiter India
- Fundsmith Equity
- L&G Global Technology Index
- Vanguard LifeStrategy 80% Equity
- Royal London Short Term Money Market
- HSBC FTSE All World Index
- Vanguard US Equity Index
- Fidelity Index World
- Vanguard Lifestrategy 100% Equity
- Vanguard Lifestrategy 60% Equity
The most popular investment trusts
In February, investors favoured six income investment trusts as they pursued growth strategies, although Caldwell pointed out that “just three have high yields above 5%: City of London, Greencoat UK Wind and BlackRock World Mining.”
City of London has fallen from third place in January to eighth in February.
“Adventurous” choices in the top 10 list include Scottish Mortgage, Polar Capital Technology Trust (moving up three spots), Allianz Technology and India Capital Growth.
- Scottish Mortgage (SMT)
- JP Morgan Global Growth & Income (JGGI)
- Greencoat UK Wind (UKW)
- Polar Capital Technology (PCT)
- Alliance Trust (ATST)
- Pershing Square Holdings (PSH)
- Allianz Technology (ATT)
- City of London (CTY)
- Blackrock World Mining Trust (BRWM)
- India Capital Growth (IGC)
The most popular equities for investors
FTSE 100 heavyweights continue to dominate the top 10 equities in February, as well as UK banking stocks.
Richard Hunter, head of markets at Interactive Investor, says: “Banks continued to be a focus of interest as they posted full-year results, with the likes of Lloyds Banking and HSBC appearing in the top ten most bought shares by ii customers. Mixed reactions to each of the banks’ numbers provided some opportunities to buy on the dip.”
The appetite for Nvidia stocks also remains; its stock price has rocketed by nearly 250% in the past year.
“Elsewhere, there were similar moves towards higher income shares as part of a portfolio that can then benefit from the wonders of compounding,” says Hunter. These include BT Group (dividend yield 7.4%), which is a new entrant, and Legal & General (dividend yield 8.1%).
“Recent weakness in the share price has helped to turbocharge Vodafone’s yield to 11.1%,” Hunter adds.
- Helium One Global (HE1)
- Nvidia (NVDA)
- Lloyds Banking (LLOY)
- Rolls Royce Holdings (RR)
- Glencore (GLEN)
- Vodafone Group (VOD)
- Tesla INC (TSLA)
- Legal & General (LGEN)
- BT Group (BT.A)
- HSBC Holdings plc (HSBA)
Vaishali graduated in journalism from Leeds University and she has experience working with the likes of Leicester Mercury, Inews and The Week. She also comes from a marketing background, where she has done copywriting and content creation for businesses.
Currently writing about all things personal finance, Vaishali is passionate about finding the best deals around, whether it's the best credit cards or the cheapest personal loans, as well as sharing top money hacks to help people save and better manage their money.
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