- Fidelity Personal Investors moved away from technology focused funds
- Amid market volatility, August saw a marked shift towards diversification and defensive assets
- Global growth opportunities remained highly attractive to investors as seen in the popularity of funds and investment trusts that offer international exposure
August was a rollercoaster month for investors, with global stock markets experiencing significant volatility. Many market indices saw sharp falls early in August, sparked by fears that the US is on track for a recession. But in the end, it was over as quickly as it had begun with markets around the world regaining much of the ground they had lost.
The last two months have been bumpy for AI stocks and one contributor to the market turmoil has been the rotation out of the highly rated Magnificent Seven stocks on the back of concerns about the sustainability of the AI growth story. Indeed, Fidelity International (“Fidelity”) ISA and SIPP investors are broadening their horizons beyond the sector, with a notable turnaround in the best-selling funds on Fidelity Personal Investing in August.
Tech-focused funds were at the forefront for Fidelity ISA and SIPP investors for much of the year, with the Legal & General Global Technology Index Trust a consistent top 10 best-seller. However, August has painted a different picture as investor enthusiasm cooled notably, with a move towards more diversified and defensive assets.
The best-selling funds on Fidelity Personal Investing in August 2024
Source: Fidelity International. Net ISA and SIPP sales in August 2024
Tom Stevenson, Investment Director, Fidelity International, comments: “The tech sector has had a stellar run, but the past month has been rocky. Nvidia has become the single biggest influence on the stock market this year, with a high correlation between movements in its share price and that of the wider market and the value of the company – briefly the world’s biggest – fell by about $750bn in July and August before regaining all of that lost market capitalisation in a handful of trading days.
“We’re seeing a classic shift towards safety, as investors seeking stability looked to preserve capital amid market volatility. In this shift, money market funds have become very appealing once again – offering liquidity and security, funds such as the Royal London Short Term Money Market Fund and Fidelity Cash Fund continue to be popular among Fidelity’s ISA and SIPP investors.
“In addition to the pullback from tech, August saw a rise in interest for funds focused on global diversification and emerging markets. A new entrant to the top ten for ISA investors is the HSBC FTSE All Share World Index Fund, indicating that investors are seeking broader exposure amidst global economic uncertainties. Notably, emerging market funds like the Fidelity China Focus Fund and Jupiter India Fund also attracted significant interest, highlighting a strategic pivot towards regions with growth potential.”
The best-selling shares on Fidelity Personal Investing in August 2024
| Top 10 best-selling ISA shares on Fidelity Personal Investing in August 2024 | Top 10 best-selling SIPP shares on Fidelity Personal Investing in August 2024 |
| Legal & General | Legal & General |
| BP | BP |
| Aviva | Glencore |
| AlphaWave IP Group | Rio Tinto |
| HSBC Holdings | Prudential |
| M&G | John Wood Group |
| Rio Tinto | HSBC Holdings |
| Carnival | Crest Nicholson |
| Shell | HG Capital Trust |
| Motorpoint Group | BT Group |
Source: Fidelity International. Net ISA and SIPP sales in August 2024
Tom Stevenson continues: “In August, Fidelity investors demonstrated a shift in their investments, broadening their focus to include a diverse array of sectors such as consumer goods, technology, and industrials. Despite a shift away from tech funds in August, for ISA investors, notable stock selections included AlphaWave IP Group which, despite the volatility seen across technology funds, featured in the top ten best-selling list for ISA investors for the first time. With the ongoing demand for semiconductor technology, particularly in AI and data centres, AlphaWave emerged as a top choice.
“Riding the wave of a cruise tourism boom is Carnival which appeared in the top ten best-selling list for ISA investors in August. The stock has made significant gains in the past few months, buoyed by strong booking momentum for 2025. Second-hand car retailer, Motorpoint Group, appeared in the top-selling list for the first time and despite a decrease in revenues and widened pre-tax losses, ISA investors see it as a compelling pick, reflecting the strong performance of the used car market.
“For SIPP investors, residential housebuilder Crest Nicholson appeared as a new entrant following its rejection of a takeover bid from its competitor, Bellway.”
The best-selling investment trusts on Fidelity Personal Investing in August 2024
| Top 10 best-selling ISA investment trusts on Fidelity Personal Investing in August 2024 | Top 10 best-selling SIPP investment trusts on Fidelity Personal Investing in August 2024 |
| Fidelity China Special Situations | JP Morgan Global Growth & Income |
| Polar Capital Technology Trust | Allianz Technology Trust |
| JP Morgan Global Growth & Income | TwentyFour Select Monthly Income |
| JP Morgan US Smaller Companies Investment Trust | F&C Investment Trust |
| City of London Investment Trust | Fidelity China Special Valuations |
| Aberforth Smaller Companies Trust | Brunner Investment Trust |
| Mercantile Investment Trust | Fidelity Special Values |
| F&C Investment Trust | Temple Bar Investment Trust |
| Balanced Commercial Property Trust | Alliance Trust |
| Greencoat UK Wind | International Public Partnership |
Source: Fidelity International. Net ISA and SIPP sales in August 2024
Tom Stevenson continues: “Despite a shift away from technology funds, Fidelity’s ISA and SIPP investors continue to see investment trusts focused on technology as attractive. The Polar Capital Technology Trust continued to attract significant inflows, securing its position as one of the top choices for the second consecutive month. Additionally, Allianz Technology Trust also maintained a strong presence in the rankings for SIPP investors.
“Beyond technology, global growth remained a key theme for Fidelity investors in August. The JP Morgan Global Growth & Income Trust saw substantial interest, particularly among ISA investors, as it offers a diversified approach to investing in high-quality companies worldwide. SIPP investors also showed a growing appetite for trusts with a focus on diversification and defensive strategies. The F&C Investment Trust, one of the oldest investment trusts, continued to draw inflows.”
