Fidelity today reveals the best performing asset classes of 2025 alongside the best-selling investments on its Personal Investing platform, highlighting a year in which global market leadership broadened and personal investors increasingly diversified their portfolios across geographies, sectors, and asset types.
A backdrop of Liberation Day tariffs, persistent geopolitical tensions, and uncertainty over the long-term implications of artificial intelligence were amongst some of the market challenges facing investors this year – however, many are likely to look back on the past 12 months with contentment.
Asset class performance in 2025 and 2024
| Asset class | 2025 (%) | 2024 (%) |
| Emerging Market Equities | 24.99 | 15.21 |
| European Equities (ex. UK) | 23.13 | 2.39 |
| Asia Pacific Equities | 20.11 | 18.13 |
| UK Equities | 19.96 | 10.93 |
| Japanese Equities | 18.91 | 5.63 |
| Global Equities | 13.89 | 19.27 |
| Commodities | 12.55 | 6.73 |
| US Equities | 10.32 | 25.02 |
| Emerging Market Debt | 7.34 | 9.44 |
| High-yield bonds | 4.66 | 9.22 |
| Cash | 4.52 | 4.83 |
| Corporate Bonds | 3.54 | 3.41 |
| Inflation-Linked | 0.99 | 0.23 |
| Government Bonds | -0.59 | -0.85 |
| Real Estate | -0.14 | 8.02 |
1Source: Fidelity International, December 2025. Datastream: Annualised total returns in GBP. 2025 data from 01.01.2025-05.12.2025
Jemma Slingo, Pensions and Investment Specialist at Fidelity International, comments: “One of the defining features of 2025 has been the clear rotation away from the United States. Last year, US equities topped the performance table with a gain of 25%. This year they sit firmly in the middle of the pack with a return of just over 10%. That shift has opened the door for a much broader set of global opportunities, and it marks an important moment for investors who had become accustomed to US market dominance.
“Valuations in the US remain very high, and there are echoes of the late 1990s dot.com bubble. At the same time, the bull market, for so long mainly an American affair, has broadened out into a more global rally. Europe led in the early part of the year as the ECB cut interest rates, while China and emerging markets have more recently taken up to the baton, on the back of a weaker US dollar.”
Landscape shifts as emerging markets outperform and Europe, Asia Pacific and the UK build momentum
Emerging market equities led the global performance table with a 24.99% return. Their resurgence reflected a powerful combination of catalysts: improving liquidity conditions, the sharp reversal of US exceptionalism, a weaker dollar and the appeal of relatively low government debt levels compared with developed markets. Europe followed with gains of 23.13%, a significant jump from 2.39% in 2024, as moderating inflation, falling interest rates and increased fiscal support helped revitalise sentiment across the region.
Asia Pacific equities rose 20.11%, buoyed by improving growth prospects and ongoing strength in technology and industrial sectors. UK equities delivered a 19.96% gain, marking another year of steady progress as attractive valuations continued to draw interest from both domestic and international investors.
Jemma Slingo comments: “Emerging markets have delivered a remarkable year, rising almost 25%. They started the year out of favour and undervalued, yet several forces have worked in their favour. Liquidity conditions have improved, interest rates have room to fall and many of the largest companies are far less exposed to global trade tensions than people often assume. A weaker dollar has also proved a powerful tailwind.
“The UK stock market has also performed surprisingly well, given the challenges facing the domestic economy. Never at the top of the performance table, rarely at the bottom, the FTSE 100 has ground out an impressive 22%2 total return in the year to date, reminding us that stock markets and the economy can march to a different beat.”
How did Fidelity’s clients react in 2025? The best sellers
Data from Fidelity reveals how investors navigated the market in 2025, balancing caution with opportunity as they repositioned their portfolios in response to shifting global leadership. The best-selling investments across funds, shares and investment trusts show a continued focus on diversification, global exposure and dependable income, alongside a strong preference for low-volatility cash solutions.
Cash and money market funds dominated the top of the bestseller list as many investors opted to prioritise liquidity while still earning a competitive return. At the same time, global index funds remained highly popular, reflecting a desire for broad, low-cost market exposure at a time when performance leadership rotated across regions.
Income strategies also featured prominently, both within funds and investment trusts, as investors sought steady distributions against a backdrop of moderating inflation and an evolving interest-rate environment. On the equity side, investors continued to favour a blend of global technology leaders and resilient UK names.
Source: Fidelity International, 2025 data as at 01.01.25-09.12.25
Jemma Slingo adds: “These best sellers tell an important story about how personal investors approached 2025. Many chose to keep a portion of their portfolios in cash or short-term money market funds, taking advantage of attractive yields while waiting for clarity on the interest rate path. At the same time, there has been strong demand for global index trackers and high-quality active funds, reflecting a desire to participate in this broadening market rally without being overly exposed to any single region.
“The popularity of income-focused strategies, both in funds and investment trusts, highlights the ongoing need for reliable distributions in a still uncertain environment. On the equity side, investors leaned into a combination of global technology names and resilient UK blue chips, showing that they value both growth potential and dependable dividends.
“For all the strength we have seen in emerging market performance this year, we have not yet seen investors fully rotate into the asset class. What we have observed instead is a more measured approach, with some clients increasing exposure indirectly through Asia-focused investment trusts such as Schroder Oriental Income and Schroder Japan.
“It has undeniably been a roller coaster of a year. Yet since the tariff shock in April, investors have largely focused on the improving backdrop of easing inflation, the prospect of lower interest rates and resilient corporate earnings.
“As we look ahead to 2026, the key message remains the value of a well-diversified, globally balanced portfolio. New opportunities are emerging and investors who remain disciplined and diversified are well placed to navigate the next phase of this maturing bull market.”
