Most-bought investments: February 2024
Investors shift towards growth strategies, and Nvidia’s popularity continues despite sizzling share price.
5th March 2024 11:51
by Camilla Esmund from interactive investor
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- Jupiter India tops the fund table in February 2024
- Growth strategies gain traction; the top 10 most-bought funds are now more growth-oriented
- Nvidia, at number 2, continues to be popular despite shares now being up by almost 250% over the last year
- Lloyds Banking and HSBC are among the top 10 most-bought equities following the release of full-year results
interactive investor, the UK’s second-largest platform for private investors and number one flat-fee platform, unveils its most-bought equities, funds, and trusts in February 2024.
Investors are showing an inclination towards growth strategies as tax year end approaches. This shift is significant, as previously we saw investors favouring income-focused investments.
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There’s also a theme of more adventurous options. This is reflected by Scottish Mortgage Ord (LSE:SMT), Polar Capital Technology Ord (LSE:PCT), Allianz Technology Trust Ord (LSE:ATT), and India Capital Growth Ord (LSE:IGC) all gaining traction with investors.
Notably, Jupiter India has emerged as the most popular fund among investors in February, suggesting a growing adventurousness in investment choices. Following closely behind is the L&G Global Technology Index, which offers exposure to leading US technology giants expected to benefit from advancements in artificial intelligence (AI). Tech/AI continues to be a popular option with NVIDIA Corp (NASDAQ:NVDA) the second most-bought equity. Investors seem unfazed by its sizzling share price, up 250% over the last year.
Below, ii explores its February 2024 most-bought investments data in more depth.
Funds and investment trusts
Kyle Caldwell, Collectives Editor at interactive investor, says, “With less than a month to go before tax year end investors have been gravitating more towards growth strategies. While over the past couple of years income has been in high demand, and remains popular, our top 10 most-bought funds and investment trusts now show more of a preference for growth. Among the top 10 most-bought funds all are growth focused. For investment trusts, six pay an income, but just three have high yields above 5%: City of London, Greencoat UK Wind (LSE:UKW) and BlackRock World Mining Trust Ord (LSE:BRWM).
“To me, this shows that some investors are becoming more confident and adventurous in the approach, further reflected by Jupiter India topping the table as the most-popular fund among our customers in February. In third place is another fund more suited to thrill seekers – L&G Global Technology Index Trust, which has plenty of exposure to the big US technology giants that are expected to benefit from advancements in artificial intelligence (AI). Investors need to be aware that this is a concentrated approach, with Microsoft Corp (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) accounting for just over a third of the fund.
“For investment trusts, adventurous approaches in our top 10 include Scottish Mortgage, Polar Capital Technology Trust, Allianz Technology and India Capital Growth.
“City of London, which has an income focus, remains in the top 10 in eighth but has slipped down from third spot in January. This is another sign of investors turning their attention more towards growth.”
Equities
Richard Hunter, Head of Markets at interactive investor, says, “Banks continued to be a focus of interest as they posted full-year results, with the likes of Lloyds Banking Group (LSE:LLOY) and HSBC Holdings (LSE:HSBA) appearing in the top 10 most-bought shares by ii customers. Mixed reactions to each of the banks’ numbers provided some opportunities to buy on the dip.
“Elsewhere, there were similar moves towards higher income shares as part of a portfolio which can then benefit from the wonders of compounding. These included the likes of Legal & General (dividend yield 8.1%) and BT Group (LSE:BT.A) (7.4%), while recent weakness in the share price has helped to turbocharge Vodafone Group (LSE:VOD)’s yield to 11.1%.
“Nvidia is an AI stock in the US which is powering many of the market gains being seen on the other side of the pond. The company released some blockbusting results which resulted in a sharp share price rise and, despite the shares now being up by almost 250% over the last year, it appears that investor appetite for the stock remains undiminished.”
Top 10 most-bought investments on interactive investor in February 2024
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.
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