Fund platforms have revealed a mixed bag of emerging market and income fund favourites purchased by investors in the run-up to the end of the tax year. These funds, a number of which are Investors Chronicle Fund tips, may give you some ideas if you are planning to make an early-bird individual savings account (Isa) investment for the new tax year. The stocks-and-shares Isa allowance for the new tax year is £11,280.
Alliance Trust Savings has revealed that four of the top five funds purchased on its i.nvest platform during the busy tax year-end period were tracker funds. The i.nvest platform was the first platform in the UK to offer Vanguard's range of tracker funds and its customers continue to show great appetite for them. However, because their charges are so low, they don't generally qualify for a trail commission rebate that's a key selling point for the i.nvest platform.
Alliance Trust's top-selling funds
|Rank||Top 5 Funds – 1 Jan 2012 – 5 Apr 2012||AMC %||Rebate %|
|1||Vanguard FTSE UK Equity Index||0.25||n/a|
|2||L&G UK Index Trust||0.4||0.3|
|3||Vanguard FTSE Developed World ex-UK Equity Index||0.3||n/a|
|4||Vanguard US Equity Index||0.2||n/a|
|5||M&G Strategic Corporate Bond*||1||0.4|
On Hargreaves Lansdown's Vantage platform, income funds, including UK equity income, bond funds and emerging market funds dominated Isa fund sales in March - see table below. All the funds on its leader board are actively managed - perhaps not surprising, since Vantage now levies a 'platform fee' on many passive funds.
Hargreaves Lansdown's top-selling funds in March (in alphabetical order)
Likewise, income funds, consisting of a mixture of UK equity income and bond funds, featured heavily on Bestinvest's table of best-selling funds in March.
Bestinvest' top-selling funds in March
Notes: *Investors Chronicle Fund Tip
Meanwhile the latest figures from the Investment Management Association (IMA) show fixed income as the highest selling asset class in February with £ Corporate Bond, £ Strategic Bond and Global Bonds making up the top three highest selling IMA sectors. However, for Isa investors, the most popular fund sectors in February were global, including two global equity sectors, reflecting a growing trend among investors to look beyond domestic borders for attractive investment opportunities.
Top five selling IMA Sectors
|All retail investors||Isa investors|
|£ Corporate Bond||Global Equity Income|
|£ Strategic Bond||£ Strategic Bond|
|Global Bonds||North America|
|Global Equity Income||Global Emerging Markets|
|Mixed Investment 40-85% Shares||Global Bonds|