Investors embrace diversification amid shifting monetary policies: Fidelity International reveals top-selling funds, shares and investment trusts in September

• Diversification dominates as investors are increasingly spreading risk across global markets and sectors
• While cash and income-producing assets remain prevalent, there’s a shift towards more growth-focussed investment as technology and emerging market funds gain popularity

London, 3 October 2024: With interest rates remaining elevated for an extended period, investors have been grappling with tighter financial conditions throughout much of 2024. However, following the Federal Reserve’s decisive shift in September – a notable half-percentage-point rate cut – there are growing indications that economic landscape is changing. 

The market is adjusting to the new monetary stance, and while the ultimate destination for rates remains uncertain, we can be sure it will be somewhere between today’s modestly restrictive levels and the ultra-loose monetary policy of the post-financial-crisis era. 

Analysis of the top-selling ISA and SIPP assets on Fidelity International’s Personal Investing platform in September reveal a blend of caution and opportunity, with an emphasis on diversification. 

The best-selling funds on Fidelity Personal Investing in September 2024

Source: Fidelity International. Net ISA and SIPP sales in September 2024

The best-selling investment trusts on Fidelity Personal Investing in September 2024

Source: Fidelity International. Net ISA and SIPP sales in September 2024

Tom Stevenson continues: “Global diversification remains a key strategy, with investors spreading risk across international markets to seize growth opportunities. The benefits of diversification were evident in the third quarter as the Legal & General Global Equity Index tracker fund rebounded following a rotation from tech into a broader market rally. After experiencing a dip in popularity in August, it reemerged as one of the top 10 best-selling funds for both ISA and SIPP investors in September.  This trend extends to investment trusts with the popularity of the F&C Investment Trust and Brunner Investment Trust, highlighting how investors are seeking global exposure.

“While the demand for cash and income-producing assets like the Fidelity Cash Fund and Global Dividend Fund remains strong, the Royal London Short Term Money Market Fund dropped out of the top 10 for the first time since March, indicating a shift towards growth-oriented investments. 

“Emerging markets have gained traction among investors, as shown by the Scottish Oriental Smaller Companies Trustreturn to the top 10.  Similarly, the Jupiter India Fund also reflect this growing interest. 

“Furthermore, the continued popularity of the Polar Capital Technology Trust and Legal and General Global Technology Index Trust underscores the importance of technology in today’s market, as investors look to balance global diversification with high-growth sectors.”

The best-selling shares on Fidelity Personal Investing in September 2024

Source: Fidelity International. Net ISA and SIPP sales in September 2024

Tom Stevenson continues: “One of the key takeaways from September’s best-selling shares is the emphasis on diversification across sectors and industries. Investors are clearly spreading their capital across a wide array of opportunities, from digital marketing with S4 Capital to essential services like Rentokil Initial and healthcare giants like GSK and AstraZeneca. This diversified approach allows them to capture growth in emerging sectors like digital transformation and helium exploration like Helium One Global, while also anchoring their portfolios in more established areas.  

“Specific events also played a role in driving investor interest in certain stocks. The UK’s leading property portal, Rightmove, turned down a £6.2bn takeover offer from the Murdoch family in September. The news of a potential cash and share deal initially sent the share price soaring by 24%, and investors were quick to capitalise on the potential gains.

“Additionally, Frasers Group has continued to expand its retail empire, attracting investors with its acquisition strategy and ability to revitalise struggling brands. Recent bids for luxury retailer, Mulberry, and strategic acquisitions across Europe, including the Netherlands, Luxembourg and Belgium, have bolstered investors’ confidence in Frasers’ ability, sending them into the top 10 best-selling shares for SIPP investors.”