US technology stocks and equity funds dominated the top-selling funds and investment trusts in January, says Fidelity International.
Following a downbeat end to 2024, US stocks rebounded strongly in the first month of the new year, with the S&P 500 gaining 2.7%.
Fidelity said investor activity highlighted clear trends, with US tech, equity funds and global diversification emerging as dominant themes shaping investment decisions.
Tom Stevenson, investment director at Fidelity International, said: “US market exposure continued to stand out across funds, trusts and shares in January. Technology giants like Nvidia, Advanced Micro Devices, Meta Platforms and Amazon featured prominently in individual share purchases, reflecting strong confidence in the continued dominance of US innovation. It remains to be seen whether the emergence of a cost-effective Chinese AI competitor in DeepSeek tempers enthusiasm in this space.”
Stevenson said the appearance of the UBS S&P 500 Index Fund confirmed that many investors are still looking for simple, low-cost exposure to the US market. However, Brown Advisory US Smaller Companies Fund, Artemis US Smaller Companies Fund, as well as Dodge & Cox Worldwide Global Stock point to a desire to diversify away from the handful of leading tech stocks and towards less highly valued smaller company and value-focussed funds.
Fidelity said investor interest also remained firmly fixed on sustainability in January, with renewable energy investments continuing to attract attention.
Stevenson said: “Alongside these growth opportunities, global diversification gained traction. Funds like the Legal & General Global Equity Index Fund and Dodge & Cox Worldwide Global Stock Fund offer investors access to balanced exposure across regions, enabling broader portfolio diversification. Investment trusts like the AVI Global Trust and Schroder Japan Trust highlighted growing interest in regional opportunities outside of traditional markets, signalling a strategic approach to mitigating risk through geographic spread.”
He added: “While growth-driven investments dominated the top picks, investors also prioritised stability. Cash and money market funds like the Royal London Short Term Money Market Fund and infrastructure-focussed trusts like the International Public Partnership Trust provided defensive options for those seeking security amid uncertain market conditions.”
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