What funds did investors buy in June?

US shares continued to lead world markets higher in June, amid persistent optimism about the future for AI. Nvidia briefly overtook Microsoft to become the world’s largest listed company before a modest retreat. Encouraging signs that US inflation continues to slow, albeit at a somewhat leisurely pace, provided further reason for markets to stay on the front foot.

France was Europe’s outlier, with shares falling back after the calling of a snap general election. Expectations of a victory for the far right Rassemblement National party drove concerns about fiscal sustainability within the eurozone, in view of the scope for a radical policy shift.   

Closer to home, the FTSE 100 Index ended June little changed despite an impending general election. Stable poll readings and confidence there will be no immediate lurches in policy calmed investors. News that inflation had fallen to the Bank of England’s 2.0% target in May bolstered shares but caused the pound to slip modestly against the dollar¹.    

World index trackers, cash funds and technology funds remained popular with Fidelity’s personal investors in June. Meanwhile, multi-asset funds were bought by SIPP investors and the Jupiter India Fund made a comeback as India’s general election reached its conclusion.

The biggest winner of the month was the Legal & General UK index Trust, which entered the top-10 for ISAs in first place. This fund tracks the FTSE All-Share Index on a net total return basis and does so by holding positions in all, or substantially all of the shares in the Index. The fund has an ongoing charge of 0.18%².

The Fidelity Cash Fund, one of the four funds selected by Fidelity’s Investment Director Tom Stevenson as his picks of 2024, took first place for SIPPs and fourth for ISAs. The fund’s SONIA benchmark interest rate remained steady at 5.2% in June, even after data showed inflation falling back to 2.0% in May³. SONIA reflects the rate that banks pay to borrow sterling overnight from other financial institutions.

The Fidelity Index World Fund was toppled from its top spot for ISAs but remained in second place for SIPP purchases. This fund tracks the MSCI World Index, also on a net total return basis. Returns are automatically converted back into sterling, providing UK investors with a straightforward and cost-effective route to geographic diversification. The fund’s ongoing charge is 0.12%.

The Legal & General Global Technology Index Trust was the most bought technology focused fund in June, ranking third for both ISA and SIPP purchases. Tracking the FTSE World Technology Index, the portfolio currently encompasses 252 holdings. The ten largest holdings make up around 70% of the portfolio. Microsoft (16.1% of the Trust at the end of May) overtook Apple as the fund’s largest holding back in January⁴.

The Fidelity Index US Fund was the second single country fund to feature on these lists, ranking fifth for both ISAs and SIPPs. Like the Fidelity Index World Fund, this fund tracks its target index (the S&P 500 in this case) on a net total return basis.

The Jupiter India Fund returned to these lists in sixth and eighth place for ISAs and SIPPs respectively last month, having been absent in May. This is an actively managed fund that aims to beat the MSCI India Index. Current large holdings include the tobacco manufacturer Godfrey Phillips India, Bharat Petroleum and State Bank of India.

India’s general election saw Prime Minister Modi retaining power but at the loss of an outright majority. This result yielded significant volatility in India’s stock market in early June. Shares quickly regained the lost ground though and added more besides, as foreign buyers returned and the focus switched back to the country’s strong growth prospects.

The Fidelity Global Technology Fund – in sixth place for SIPPs and ninth for ISAs – continues to hold comparatively modest weightings in the market’s largest stocks. Microsoft and Apple each accounted for 5.0% of the Fund’s assets at the end of May, while Nvidia didn’t even make the top-10. Having said that, Taiwan Semiconductor – which makes all of Nvidia’s high-end chips – is now the top holding. It accounts for around 5.7% of the portfolio.

Multi-asset funds took two of the top-10 positions for SIPP purchases. The Vanguard LifeStrategy 80% Equity Fund in seventh place lies at the more aggressive end of Vanguard’s LifeStrategy series. While this fund invests primarily in index tracking funds from the Vanguard stable, there is an active element in that the manager has discretion over which funds are selected and how much is apportioned to each.

Meanwhile, the Fidelity Multi Asset Allocator Growth Fund slipped two places to ninth. As its name implies, this fund invests in a combination of shares and bonds, with shares currently accounting for around 60% of the portfolio. This fund aims to increase in value over a period of five years or more and allocates at least 70% to index tracking funds.

Two more Legal & General funds made it to the lower reaches of these tables. The Legal & General Global 100 Index Trust – in seventh place for ISA purchases – tracks the S&P Global 100 Index which is, in effect, a FTSE 100 for the world. Meanwhile, the Legal & General Cash Trust was in eighth for ISAs and tenth positions for SIPPs. The Royal London Short Term Money Market Fund rounded out the table for ISAs and was the fourth most bought fund for SIPPs.

Top 10 best-selling ISA funds on Fidelity Personal Investing in June 2024

1. Legal & General UK Index Trust
2. Fidelity Index World Fund
3. Legal & General Global Technology Index Trust
4. Fidelity Cash Fund
5. Fidelity Index US Fund
6. Jupiter India Fund
7. Legal & General Global 100 Index Trust
8. Legal & General Cash Trust
9. Fidelity Global Technology Fund
10. Royal London Short Term Money Market Fund

Top 10 best-selling SIPP funds on Fidelity Personal Investing in June 2024

1. Fidelity Cash Fund
2. Fidelity Index World Fund
3. Legal & General Global Technology Index Trust
4. Royal London Short Term Money Market Fund
5. Fidelity Index US Fund
6. Fidelity Global Technology Fund
7. Vanguard LifeStrategy 80% Equity Fund
8. Jupiter India Fund
9. Fidelity Multi Asset Allocator Growth Fund
10. Legal & General Cash Trust

Source: Fidelity International. Gross ISA and SIPP sales in April 2024 for Personal Investors only.

Sources

¹ ONS 19.06.24
² LGIM, 30.04.24
³ Bank of England, 27.06.24
⁴ LGIM, 31.05.24

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing into a fund, please read the relevant key information document which contains important information about the fund. Eligibility to invest in a SIPP or ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a SIPP will not normally be possible until you reach age 55 (57 from 2028). Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment.  If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.