Investors continued to pile into index tracker funds in April, according to Fidelity International, with technology funds proving popular despite some of the largest tech companies encountering a difficult start to 2024.
According to Fidelity, the top best-selling ISA fund on Fidelity Personal Investing last month was Fidelity Index World Fund, followed by Fidelity Cash Fund, Fidelity Global Technology Fund, Legal & General Global Technology Index Trust and Fidelity Index US Fund.
Legal & General Global Equity Index Fund, Jupiter India Fund, Fidelity Global Dividend Fund, Legal & General Cash Trust and Legal & General Global 100 Index Trust also featured in the top ten.
Ed Monk, associate director at Fidelity International, said: “Fidelity’s personal investors continued their bias towards big tech in April, through both indexed and actively managed funds. The popularity of the Legal & General Global Technology Index Trust underscores the appeal of tech-focused investments, scoring well for ISA and SIPP investors.
“The top seven companies, known as the Magnificent Seven, have been driving much of the gains for the year, but returns from the group are not evenly spread between them, with losses being registered by Tesla and Apple so far in 2024.”
Monk said investors in global funds such as the Legal & General Global Equity Index Fund and Legal & General Global 100 Index Trust are set to benefit from rising markets worldwide, with exposure to diverse, international markets.
Meanwhile, the Jupiter India Fund has maintained its popularity throughout the year, but with a general election underway, investors will need to watch carefully for any signs of increased market volatility.
While the appeal of money market funds has “somewhat waned” over recent months, Monk said cash funds continue to be attractive as interest rates remain high, however, a proportion of this may be down to investors parking money around the start of the new tax year.
Fidelity also listed the 10 best-selling ISA shares on Fidelity Personal Investing in April 2024. These included Legal & General Group; Phoenix Group Holdings; BAE Systems; Aviva; M&G Plc; 3i Group; National Grid; Prudential; Ocado Group and GlaxoSmithKline.
Monk continued: “The list of most popular shares is well diversified and features many of the usual FTSE 100 stalwarts across financial services, utilities, pharmaceuticals, and defence industries. Airlines put the pandemic in the rear-view mirror as holidaymakers provided a significant boost to travel in recent months, with easyJet returning to the FTSE 100 in March following an almost four-year break.”
Additionally, Fidelity Personal Investing customers continued to gain exposure to global markets through investment trusts in April, with trusts such as JP Morgan Global Growth & Income, F&C Investment Trust and BBGI Global Infrastructure all featuring in both the best-selling ISA and SIPP tables, the firm said.
