Investors sought out equity income funds and opted for lower risk bond funds with their ISAs during January, signalling a cautious start to this year’s ISA season.
Equity income and bond funds dominated the top ten ISA sales chart via the Skandia Investment Solutions platform during January, with M&G and Invesco Perpetual funds taking seven of the ten places.
|
Rank
|
Most popular ISA fund sales
|
|
1
|
M&G Optimal Income
|
|
2
|
Invesco Perpetual High Income
|
|
3
|
Invesco Perpetual Income
|
|
4
|
M&G Corporate Bond
|
|
5
|
M&G Strategic Corporate Bond
|
|
6
|
Invesco Perpetual Corporate Bond
|
|
7
|
Ignis UK Property
|
|
8
|
Skandia Strategic Bond
|
|
9
|
Skandia Gilt (Signature)
|
|
10
|
M&G Global Dividend
|
In terms of investment sectors, UK fixed interest was the clear winner, accounting for just over a quarter of sales, followed by UK Equity and managed funds.
|
Investment sector
|
% of sales
|
|
UK Fixed Interest
|
26%
|
|
UK Equity
|
18%
|
|
Managed
|
16%
|
|
Global Specialist
|
10%
|
|
North American Equity
|
7%
|
|
Property
|
5%
|
|
Emerging Market Equity
|
5%
|
|
Far East Equity
|
5%
|
|
European Equity
|
3%
|
|
International Fixed Interest
|
3%
|
|
Japanese Equity
|
2%
|
|
Cash/Money Market
|
1%
|
Nick Dixon, Marketing Director at Skandia, comments:
“Investors have made a cautious start to ISA season with UK fixed interest funds being used to manage risk within portfolios. However, many investors are obviously taking a long term view and seeking buying opportunities with equity income funds proving particularly popular.”