The most popular funds being bought within ISAs so far this year.
Technology and Global exposure take preference for 2018 ISA fund investors
|Top purchased funds in ISAs*|
|1. Legg Mason Japan Equity|
|2. Fundsmith Equity|
|3. Jupiter India|
|4. Man GLG Continental European Growth|
|5. AXA Framlington Global Technology|
|6. Lindsell Train Global Equity|
|7. Janus Henderson Global Technology|
|8. LF Woodford Equity Income|
|9. FP Crux Euro Special Sits|
|10. BlackRock Continental Europe|
*Data is based on the number of ‘buy’ trades made by customers within ISAs here at The Share Centre between 01/01/2018-23/03/2018
ISA investors trading activity in the first three months of 2018 continues to suggest investors prefer to diversify their portfolios away from the long standing home bias of investing in the UK and instead opt for exposure across the globe.
Looking East, Japan holds on to the top investment destination of choice for investors who may have taken some reassurance that Abenomics will continue as a result of the re-election of Shinzo Abe at the back end of last year. Meanwhile, the progress being made by the reformist pro-business government of India and the favourable outlook may explain the presence of the Jupiter India fund.
Moving West, an increased interest in Europe is unsurprising given that falling unemployment, improving policy reforms and reduced budget deficits across the continent are providing a positive backdrop for growth in the continent. The presence of three European focussed funds Man GLG Continental European Growth, FP Crux Euro Special Sits and BlackRock Continental Europe reflects this ethos.
All the while, investors continue to see value and growth potential in the technology sector at a time when some market commentators have been arguing its overvalued, particularly FAANG stocks; Facebook, Amazon, Apple, Netflix and Google, hence the presence of two technology specific funds. Moreover, with increasing talk regarding robots playing an ever larger role in our day to day lives, artificial intelligence systems becoming entrenched, just ask Siri, it is not surprising in this age of innovative disruption the cohort are seeking out more automatous opportunities.
While Brexit has been a drag on investor confidence the economic situation has been better and more resilient than many expected and UK equity valuations are attractive, which may be leading investors to seek out tried and tested fund managers like Neil Woodford. Terry Smith has equally remained popular amongst our investors primarily for his preference for defensive companies that are resilient to change, that are technological innovative, which have existing advantages that are difficult to replicate.
What’s most encouraging is that overall; investors are recognising the importance of utilising the tax free benefits of investing in a stocks and shares ISA with activity up 5% and inflows up 8% already, year on year.
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.