Cash and money market funds remained dominant for investors in October, reflecting a continued preference for safety, according to Fidelity International.
Data from Fidelity’s Personal Investing Platform showed Fidelity Cash Fund was the best-selling fund in October, followed by Royal London Short Term Money Market Fund and Legal & General Cash Trust.
However, investors also showed growing interest in income-generating strategies and emerging market opportunities. Fidelity said the balance between caution and calculated risk-taking suggests that investors are positioning for the next phase of the rate cycle: steady inflation moderation and the first signs of monetary easing in 2026.
Ed Monk, pensions and investment specialist at Fidelity International, said: “Cash and money market funds continued to dominate in October. Investors are clearly staying liquid while the Bank of England holds interest rates steady at 4%.
“What’s notable this month is the growing spread of providers attracting flows within the cash category. Alongside the long-standing favourites, cash funds from BlackRock and Aberdeen also featured among the most-bought. This broader mix suggests investors are prioritising liquidity and capital preservation.”
The data showed funds with emerging market exposure enjoyed a notable pick up in demand during October, with the Lazard Emerging Markets Fund and M&G Emerging Markets Bond Fund both featuring among the most bought.
Precious metals also remained firmly on investors’ radars, although there was a slight reduction in exposure compared to September, the firm said.
“Taken together, October’s activity paints a picture of selective positioning. Investors remain defensive but are gradually widening their scope – looking beyond cash to income, credit and emerging-market opportunities while staying diversified and liquid.
“With inflation easing and rate cuts on the horizon, investors appear to be quietly positioning portfolios for a gentler monetary environment in 2026.”
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