- Investors retreat from US markets – for the first time this year, no US-focused funds feature among the top 10 best-sellers as appetite for large-cap tech and US smaller companies wanes
- Three cash funds now rank among the most popular investments as investors adopt a more cautious stance
- Global diversification and defensive sectors like infrastructure and income-focused trusts see increased demand
London, 04 April 2025: Fidelity International (“Fidelity”) reveals the top-selling funds, investment trusts and shares through its Personal Investing platform for March 2025, highlighting a notable shift away from US-focused investments. The trend, which first emerged in February as interest in technology stocks declined, has now solidified – with no US-focused funds in the top 10 for the first time this year.
Funds such as Artemis US Smaller Companies which had previously signalled a move away from large-cap tech towards smaller US firms, have now fallen out of favour with investors. The data suggests a reluctance to maintain US exposure. Instead, investors have increased allocations to cash funds and globally diversified strategies.
With concerns over trade tariffs, market volatility and economic uncertainty growing, investors are taking a more defensive stance, increasing their allocations to cash and lower-risk assets. Three cash funds – Fidelity Cash Fund, Royal London Short Term Money Market Fund and Legal & General Cash Trust – now rank among the most popular investments, as many investors park capital in cash ahead of the new tax year.
The best-selling funds, investment trusts and shares on Fidelity Personal Investing in March 2025
Source: Fidelity International Personal Investing Platform Net combined ISA and SIPP sales 01.03.25-31.03.25
Ed Monk, Associate Director at Fidelity International, comments: “We started to see a move away from US equities in February, particularly as investor appetite for technology stocks softened. However, March saw an even more pronounced move, with investors pulling back from not just large-cap tech but also from US smaller companies, which had previously been seen as an alternative. For the first time this year, US-focused funds have dropped out of the rankings, highlighting a broader reluctance to maintain US exposure.
“In recent months, US technology stocks have dominated investor demand, but March’s data tells a different story. None of the Magnificent Seven appeared among the most traded shares, signalling a shift in focus towards areas offering more resilience in the current environment.
“While investors reduced their US exposure, they have not turned away from equities altogether. Instead, we’ve seen a clear preference for globally diversified funds and European markets. Funds such as Fidelity Index World Fund, Dodge & Cox Worldwide Global Stock Fund and Artemis SmartGARP European Equity Fund continued to be popular, showing that investors are looking for opportunities outside of the US. However, some of these globally diversified funds will still have significant US allocations, meaning that many investors remain indirectly exposed to US equities, even if they are not consciously seeking it.
“With market uncertainty persisting and the tax year end approaching, we’ve also seen a strong move towards cash and defensive assets. Investors looking to preserve capital have favoured cash proxy investments such as the Fidelity Cash Fund, Royal London Short Term Money Market Fund and Legal & General Cash Trust. Meanwhile, infrastructure investments have gained traction, reflecting demand for inflation-resistant assets with stable income potential. The continued popularity of International Public Partnership and the new entrant of 3i Infrastructure show that investors are turning to essential services and transport infrastructure as defensive plays in an uncertain market.”
