Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

THE first few weeks of the new tax year remained a challenging time for investors, as growth stocks laboured under the twin pressures of rising interest rates/bond yields and the continuing war in Ukraine.

Technology companies, in particular, came in for some close scrutiny. Quarterly results issued by America’s tech giants towards the end of the month revealed divergent paths in business trends and success or failure was recognised accordingly by the markets.

The UK stock market continued to hold up relatively well compared to its global peers, benefiting from its relatively defensive makeup and high exposure to energy and commodities producers.

Despite the travails of the past few months, the headline FTSE 100 Index is roughly level pegging to slightly ahead of where it began the year1.

The popularity of funds skewed towards technology companies may have weakened in April, but it wasn’t by much, especially among ISA investors on the Fidelity Personal Investing platform.

The Fidelity Global Special Situations Fund was the second most bought fund for ISAs, with the Rathbone Global Opportunities Fund not far behind in fourth place.

The more widely spread but still growth oriented Fundsmith Equity Fund came third for ISAs and second for SIPPs, further demonstrating its enduring appeal.

This fund was nearly one third weighted in technology at the end of last month, but another third or so was invested in consumer staples, which couldn’t be more different2.

One significant change from March was the growing presence of low cost, index trackers among the most heavily bought funds. This was particularly true for SIPP purchases, where the Fidelity Index UK Fund and Fidelity Index US Fund were both top-10 choices.

However, it was the Fidelity Index World Fund that took the top slot for SIPP buys in April, rising from seventh place the prior month.

This fund tracks the MSCI World Index converted back into sterling, so offers investors with mainly UK-based portfolios a quick and easy way of gaining quite a bit of additional diversification. It’s not expensive either, with an ongoing annual charge of just 0.12%.

The continuing popularity of gold was still evident in April, with the Ninety One Global Gold Fund being the sixth and seventh most popular choice among ISA and SIPP investors respectively.

This highly regarded fund invests in gold mining shares as opposed to the metal itself. Miners have the potential to outperform physical gold in a gold bull market, owing to revenue increases that drop straight to the bottom line.

An interesting new entrant was the Fidelity American Special Situations Fund – in tenth place for SIPP purchases. It’s interesting because this fund targets “off the radar” companies, suggesting it could work as a counterpoint to the big US tech names we all know and read about every day.

This fund’s largest holdings currently include the health insurance provider Anthem and the oilfield services company Baker Hughes.

Fidelity’s quarterly Investment Outlook – the first since the outbreak of war in Ukraine and a good source of investing ideas – was published mid April.

Source:
1 Bloomberg, 03.05.22
2 Fundsmith, 29.04.22

Top 10 best-selling ISA funds on Fidelity Personal Investing in April 2022

1. Fidelity Index World Fund
2. Fidelity Global Special Situations Fund
3. Fundsmith Equity Fund
4. Rathbone Global Opportunities Fund
5. Fidelity Index UK Fund
6. Ninety One Global Gold Fund
7. Fidelity Index US Fund
8. Fidelity Global Dividend Fund
9. Fidelity Global Technology Fund
10. Fidelity Special Situations Fund

Source: Fidelity International. Gross ISA sales in April 2022 for Personal Investors only.

Top 10 best-selling SIPP funds on Fidelity Personal Investing in April 2022

1. Fidelity Index World Fund
2. Fundsmith Equity Fund
3. Fidelity Index US Fund
4. Fidelity Index UK Fund
5. Vanguard LifeStrategy 80% Equity Fund
6. Fidelity Multi Asset Income and Growth Fund
7. Ninety One Global Gold Fund
8. Fidelity Cash Fund
9. Rathbone Global Opportunities Fund
10. Fidelity American Special Situations Fund

Source: Fidelity International. Gross SIPP sales in April 2022 for Personal Investors only.

Important information: Investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing into a fund, please read the relevant key information document which contains important information about the fund. Eligibility to invest in a SIPP or ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a SIPP will not normally be possible until you reach age 55 (57 from 2028). Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.

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