Most-bought investments: March 2024
As the end of the tax year approaches, investors opt for consistency and familiar strategies.
3rd April 2024 11:37
by Camilla Esmund from interactive investor
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- Demand for global strategies remains strong across both funds and trusts
- Fundsmith Equity reclaimed the most-bought fund position in March, moving up one place
- Investors are continuing to favour passive strategies rather than seeking out more focused active fund exposure
- In the equities space, Nvidia's stellar performance sees it reigning at the top with a staggering 90% gain in the first quarter alone
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 March 2024.
In the lead-up to the end of the tax year, interactive investor’s most-bought investments reflect a sense of consistency, with little change overall from February.
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Investors continue to look global. Notably, F&C Investment Trust Ord (LSE:FCIT) joined the top 10 in March – a trust known for its globally diversified approach. ii’s most-bought investment trusts mirror this global trend, with investors also on the lookout for income strategies with attractive yields. Popular options include JPMorgan Global Growth & Income Ord (LSE:JGGI), Greencoat UK Wind (LSE:UKW), and City of London Ord (LSE:CTY). Meanwhile, technology continues to captivate investors.
In terms of individual shares, FTSE 100 stalwarts such as Legal & General Group (LSE:LGEN), Vodafone Group (LSE:VOD), and Lloyds Banking Group (LSE:LLOY), maintained their popularity on the platform in March. However, Glencore (LSE:GLEN), BT Group (LSE:BT.A), and HSBC Holdings (LSE:HSBA) dropped off the list, facing year-to-date losses.
Artificial intelligence (AI) continues to generate excitement with investors. NVIDIA Corp (NASDAQ:NVDA)'s remarkable 90% first-quarter gain solidified its dominance at the top spot, while Tesla Inc (NASDAQ:TSLA)'s popularity among interactive investor customers persisted despite challenges.
Below, interactive investor’s experts explore March 2024’s most-bought data in more depth
Equities
Commenting on the most-bought direct equities in March, Victoria Scholar, Head of Investment, interactive investor, says: “Solid dividend-paying FTSE 100 stocks like Legal & General, Vodafone, and Lloyds Banking Group retained their spots on the list of most-bought stocks on the interactive investor platform in March. However, other FTSE 100 constituents such as Glencore, BT Group, and HSBC, slipped off the list. All three are nursing losses year-to-date having underperformed the wider UK blue-chip index in the first quarter. BAE Systems (LSE:BA.) was a new addition in March - it has logged a gain of nearly 20% since the beginning of January, supported by strong military spending amid the conflicts in Ukraine and the Middle East.
“In the US, artificial intelligence (AI) stock market darling Nvidia continues to dominate the list thanks to its impressive share price performance, up almost 90% in the first quarter alone. Meanwhile, Tesla remains among the most-popular stocks among ii customers – its shares have been struggling so far in 2024, weighed down by weak electric vehicle demand and higher interest rates. However, its loyal band of followers are clearly using this pullback as an opportunity to ‘buy the dip.'”
Funds and investment trusts
Commenting on the most-bought funds and trusts on ii in March, Kyle Caldwell, Collectives Specialist at interactive investor, says: “In the run-up to tax year end there has been little change to our most-popular funds and investment trusts, reflecting the fact that investors are sticking with familiar strategies rather than going off-piste.
“Among our top 10 most-bought funds and investment trusts there was only one new entrant – F&C Investment Trust. The UK’s oldest investment trust is no stranger to the top 10 having last appeared in October. The global multi-manager strategy is highly diversified with more than 400 holdings.
“Going global is one of key themes continuing to play out among our customers. Among funds seven of the top 10 invests globally, and for investment trusts six have global approaches.
“Fundsmith Equity reclaimed the most-bought fund position in March, moving up one place from second. The £25.5 billion fund, managed by Terry Smith, is up 9.6% this calendar year (to the end of March), just behind the 9.8% return of the MSCI World index. Its annualised return since launch in 2010 is 15.8% a year, ahead of the 12% figure for its benchmark. Two other active funds in the top 10 are Jupiter India and Royal London Short Term Money Market.
“Among investment trusts, India exposure is also present, with India Capital Growth Ord (LSE:IGC) in the top 10. India’s stock market has been a strong performer over the past couple of years, with one positive driver being strong economic growth. The attractions of India are well known. It is blessed with favourable demographics, including a young population.
“Meanwhile, the popularity of Royal London Short Term Money Market shows that investors are taking advantage of a low-risk area of the bond market offering high income following interest rate rises. The fund yields 5.25% by investing in cash-like instruments, such as short-term bonds.
“However, on the whole, investors are continuing to favour passive strategies rather than seeking out more focused active fund exposure. Core global funds that passively track the up and down movements of global stock markets feature prominently in the top 10: HSBC FTSE All-World Index, Fidelity Index World and three funds from Vanguard’s LifeStrategy range (the 100% Equity, 80% Equity, and 60% Equity versions).
“For investment trusts, as well as going global being a key theme, income strategies with attractive yields also remain popular, including JPMorgan Global Growth & Income, Greencoat UK Wind and City of London.
“Other trends are technology strategies continuing to be in vogue, with Polar Capital Technology Ord (LSE:PCT) and Allianz Technology Trust Ord (LSE:ATT) both in the top 10. Despite over the past year benefiting from excitement around the potential for artificial intelligence (AI) to disrupt various industries, both are trading on discounts of around 10%. For those taking the view that the AI theme has plenty of staying power, the tech trust duo offer investors a cheaper entry point to gain exposure to an area that has seen both share prices and valuations sizzle.”
MOST-BOUGHT INVESTMENTS ON INTERACTIVE INVESTOR (ii) IN MARCH 2024
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