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 half of 2022 proved a challenging period for investors. You have to go back more than 40 years to find a time when the retail prices index was as high as it is today1. As in the past, high inflation and rising interest rates have blighted both bonds and shares.

Energy remains the bright spot to date, owing to rising demand buffeting against supply shocks, including the war in Ukraine. Technology has been and remains firmly out of favour, although falling valuations appear to have kept a significant number of investors interested.

So starting with the positives, the BlackRock Global Funds - World Energy Fund attracted an even greater proportion of investors on the Fidelity platform in June, rising to first place for SIPP purchases and fifth place for ISAs.

June itself was not a particularly good month for oil, as concerns that rising interest rates might spark a world recession held sway. However, there are now hopes the ending of lockdown conditions and a new infrastructure push in China may help offset some slower growth elsewhere.

The more broadly based BlackRock Natural Resources Growth & Income Fund – essentially oil plus mining and agriculture – was also popular with SIPP investors.

Meanwhile, global growth favourites the Fundsmith Equity Fund and Rathbone Global Opportunities Fund remained popular choices, indicating many investors are prepared to look through volatile markets and stay the course.

The Fundsmith Equity Fund – which maintains a time-honoured commitment to resilient growth companies – held up best, being the fourth most bought fund for ISAs and second most popular choice for SIPPs.

Staying on the global theme, the Fidelity Index World Fund was favoured once again for both ISAs and SIPPs, taking the top slot for ISA buys for a third consecutive month.

This fund tracks the MSCI World Index converted back into sterling, so provides some readymade global exposure at low cost, but without the active stock selection elements of the two other funds named above.

On a different global tack, the Fidelity Global Dividend Fund held steady in sixth place for ISA buys in June. It’s scrupulous focus on business quality and companies that can truly afford the dividends they pay is clearly striking a chord in the present environment.

The Fidelity Cash Fund also figured prominently in June – being in third and fourth places respectively for ISAs and SIPPs – suggesting some investors are sitting on their hands waiting for investment conditions to stabilise.

Other investors plumped for the UK stock market, which continues to look inexpensive compared to other major world markets.

The Fidelity UK Opportunities Fund entered the top-10 for ISA purchases in June. This fund is headed up by the highly experienced Leigh Himsworth. The Fund actively targets companies for their potential to generate capital growth and here you’ll find a diverse range of blue chips vying with mid-cap and smaller UK companies for a place in the portfolio.

1 ONS, 22.06.22

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

1. Fidelity Index World Fund
2. Fidelity Global Special Situations Fund
3. Fidelity Cash Fund
4. Fundsmith Equity Fund
5. BlackRock Global Funds - World Energy Fund
6. Fidelity Global Dividend Fund
7. Fidelity Index UK Fund
8. Fidelity Index US Fund
9. Rathbone Global Opportunities Fund
10. Fidelity UK Opportunities Fund

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

1. BlackRock Global Funds - World Energy Fund
2. Fundsmith Equity Fund
3. Fidelity Index World Fund
4. Fidelity Cash Fund
5. Fidelity Index UK Fund
6. BlackRock Natural Resources Growth & Income Fund
7. Lazard Commodities Fund
8. Fidelity Multi Asset Allocator Adventurous Fund
9. Rathbone Global Opportunities Fund
10. Fidelity Index US Fund

Source: Fidelity International. Gross ISA and SIPP sales in June 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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