Funds are a must for a well-diversified portfolio, allowing you to spread your investment across a number of assets, but stocks and investment trusts also present a bargain buying opportunity as market volatility continues.
But which ones are the most popular stocks and which funds are investors choosing to pump their money into right now?
The most popular funds for investors
According to fund supermarket interactive investor, these are the ten most popular funds bought on its platform in September 2022.
- Fundsmith Equity
- Vanguard Lifestrategy 80% Equity
- Vanguard US Equity
- Vanguard Lifestrategy 100% Equity
- Vanguard Global All Cap Index
- Vanguard Lifestrategy 60% Equity
- Legal & General Global Tech
- Vanguard FTSE Developed Tech
- HSBC American Index
- Fidelity Index World
Terry Smith’s Fundsmith Equity is the only active fund that remains in the top ten of the most popular funds. Passive funds continue with their popularity, with six passive funds from Vanguard in the top ten.
This is the lowest number of most-bought active funds that interactive investor has recorded in any previous month, it said – possibly reflecting the caution, as investors remain unsure if active funds are best placed to invest in at a time of uncertainty.
The ten most popular stocks purchased by investors
These were the most popular stocks bought on the platform in September 2022.
- Lloyds Banking Group (LSE: LLOY)
- Legal & General (LSE: LGEN)
- Rolls-Royce Holdings (LSE: RR)
- Cineworld (LSE: CINE)
- Glencore (LSE: GLEN)
- Vodafone Group (LSE: VOD)
- Taylor Wimpey (LSE: TW)
- Persimmon (LSE: PSN)
- Angus Energy (LSE: ANGS)
- Barratt Developments (LSE: BDEV)
Commenting on the most popular stocks, Keith Bowman, investment analyst at interactive investor, said: “Share price falls of up to a fifth during the month for housebuilders Persimmon, Taylor Wimpey and Barratt Developments left investors taking interest.
“Expected interest rate rises and a chaotic mortgage market following the mini budget all weighed on prospects.
“Cuts to stamp duty and the cancelling of a planned increase in corporation tax announced within the mini budget both swayed to the upside, with forecast double-digit dividend yields for all three FTSE 100 companies leaving them firmly in the gaze of income orientated investors.
Bowman added: “The aftermath of the mini budget also left investors pondering the outlook for major financial company Legal & General. Severe disruption to the UK gilts market cast a shadow over its sizeable pension operations, leaving the shares down around 14% over the month. Like the housebuilders, that added to the attraction of a now more than 8% historic and estimated future dividend yield.”
The most popular investment trusts for investors
According to interactive investor, these were the most popular investment trusts purchased via its platform in September 2022.
- Scottish Mortgage Investment Trust (LSE: SMT)
- City of London Investment Trust (LSE: CTY)
- Greencoat UK Wind (LSE: UKW)
- The Renewables Infrastructure Group (LSE: TRIG)
- Tritax Big Box Reit (LSE: BBOX)
- F&C Investment Trust (LSE: FCIT)
- BlackRock World Mining (LSE: BRWM)
- Chrysalis Investments (LSE: CHRY)
- Merchants Trust (LSE: MRCH)
- RIT Capital Partners (LSE: RCP)
Tritax Big Box Reit (real estate investment trust) and Chrysalis Investment, have entered the top ten as bargain hunters take advantage of deep discounts.
See also:
The pick of this year’s best-performing investment trusts
The best renewable energy funds to buy now
