10 most-bought funds, trusts and equities in June 2020

by Jemma Jackson from interactive investor |

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Over the past month, ethical investing continued its ascendancy and investors maintain global approach. 

Ethical fund Baillie Gifford Positive Change continued its ascendancy on the fund purchases list on interactive investor in June. It maintained its charge as calls for a ‘green recovery’ (#BuildBackBetter) from the Covid-19 economic disruption gathered momentum, along with the launch of the Make My Money Matter campaign.

Funds

The fund, which only launched in 2017, has made the top 10 cut for the second month in a row (last month was the first time an ethical fund has made the interactive investor top 10), climbing five positions to rank fourth. That is just behind the ever-popular Fundsmith Equity, which retains the number one spot ahead of Baillie Gifford American and Vanguard LifeStrategy 80% Equity (80% shares, 20% bonds)– in second and third positions respectively.

Vanguard LifeStrategy 60%, in sixth, is one of only three passively managed funds on the top 10 list, along with the 80% variant and L&G Global Technology Index in eighth.

Baillie Gifford Long Term Global Growth fund is the only new entrant since last month, replacing Vanguard LifeStrategy 100% in 10th. Baillie Gifford Global Discovery, Lindsell Train Global Equity and Polar Capital Technology remain on the top 10 most-bought list.

Investment trusts

When it comes to investment trusts, Scottish Mortgage remains rooted at the top of the table. It boasts a record as the most-purchased investment trust on the interactive investor platform every month bar one since February 2014.

The investment trust version of Polar Capital Technology (LSE:PCT) ranks second on the list, ahead of another tech-focused fund, Allianz Technology Trust (LSE:ATT), in third. 

There are two new entrants to the list from last month: Monks (LSE:MNKS), in ninth, and BlackRock World Mining Trust (LSE:BRWM) in tenth, replacing The Renewables Infrastructure Group (LSE:TRIG) and Finsbury Growth & Income (LSE:FGT).

Edinburgh Worldwide (LSE:EWI), City of London (LSE:CTY), Worldwide Healthcare (LSE:WWH), Smithson (LSE:SSON) and Alliance Trust (LSE:ATST) all retain a place on the list.

Dzmitry Lipski, Head of Funds Research, interactive investor, says: “It is great to see an ethical fund ranking high in the top 10 fund purchases on our platform, reflecting the burgeoning demand for ethical investments which shows no signs of slowing down.

“Perhaps the Covid-19 pandemic, which has affected all aspects of life and has raised some fundamental questions about how we live, work and the sort of planet we want to live in, has fed through and led to a greater demand for ethically minded investment options.

“But investors have continued to put their faith in industry stalwart funds and investment trusts like Fundsmith Equity and Scottish Mortgage (LSE:SMT) investment trust to get them through the period of heightened stock market volatility and emerge from it richer. Appetite to UK portfolios remains soured, with investors instead adopting a global approach or broader investment themes like technology.”

Ethical investing

Mindful of the growing interest in ethical investing, to make it easier to find suitable ethical investments, interactive investor publishes an ethical investing long list that is broken down into three ii ACE investment styles – Avoids, Considers and Embraces – to help steer investors.

We also launched our ethical ACE 30 rated list, the UK’s first, last year, and an interactive investor ethical growth portfolio in January 2020 for investors who want a ready-made, balanced, multi-asset portfolio run within a socially responsible investing framework.

Equities

Myron Jobson, Personal Finance Campaigner, interactive investor, says: “Along with the usual suspects – Lloyds Banking Group (LSE:LLOY), BP (LSE:BP.) and Barclays (LSE:BARC) – are a host of stocks that have seen their share price plunge, owing to the enforced Covid-19 lockdown. Many of our customers have bought on the dip in hope of snagging a bargain. Among these are Aston Martin (LSE:AML), which has suffered a 70% fall in its share price since the beginning of the year, and easyJet (LSE:EZJ), falling by 53%.

“Buying low, selling high is the name of the game when it comes to investing but it is difficult in reality. The stock prices of these companies could fall further still before rebounding.  Remember, investing is a long-term ride and whatever your view on markets, a well-diversified portfolio should help investors navigate through economic uncertainty and choppy markets. This should give them the best possible chance of generating a positive outcome over the long term.”

Top 10 most-bought funds, investment trusts and equities on interactive investor in June 2020

Fund Investment Trust Equity
Fundsmith Equity Scottish Mortgage International Consolidated Airlines Group
Baillie Gifford American Polar Capital Technology Trust Lloyds Banking Group
Vanguard LifeStrategy 80% Equity Allianz Technology Aston Martin Lagon
Baillie Gifford Positive Change Edinburgh Worldwide Avacta Group
Baillie Gifford Global Discovery City of London EasyJet
Vanguard LifeStrategy 60% Equity Worldwide Healthcare Cineworld Group
Lindsell Train Global Equity Smithson Carnival
L&G Global Technology Index Trust Alliance Trust BP
Polar Capital Technology Monks Rolls-Royce Holdings
Baillie Gifford Long Term Global Growth Blackrock World Mining Trust Barclays

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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