Interactive Investor's most-traded funds

Equities remain the favoured asset class among private investors this year as big-name fund managers continue to draw inflows

Global markets have experienced one of the stormiest six months in recent memory, but fund investors have held-fast to their favourite equity managers. Continuing his reign over Interactive Investor's most-bought table, Neil Woodford's CF Woodford Equity Income is the most-traded fund of 2015 so far, while Money Observer Rated Funds AXA Framlington Biotech and Fundsmith Equity also remained popular. Fellow Rated Fund Artemis Global Income also continued to draw investors thanks to steady returns and a stable yield. Meanwhile, passive funds have been gaining traction, suggesting that active managers may have to work harder to keep investors in the future.

This is not a personal recommendation to deal and the decision to invest is yours alone. If you are in any doubt whether these investments are suitable for you then you should consult your financial adviser.

*All performance data is correct as at 1 July 2015 and year to date references represent the first six months of 2015

CF Woodford Equity Income

Neil Woodford remains king of the league tables, with CF Woodford Equity Income the most-traded fund on Interactive Investor so far in 2015. The first to be launched out of the ex-Invesco Perpetual star's new venture, Woodford Investment Management, CF Woodford Equity Income has been a top seller and a top performer since its launch in June 2014. In the six months to 1 July the fund has returned 8.3%, placing it 14th in a sector of 85 funds, while over one year it is the top sector performer with a return of 16.7%.

The manager has achieved this feat by implementing his tried and tested investment formula of backing mega-cap yield stocks such as Imperial Tobacco and AstraZeneca combined with a "tail" of holdings in small, often early stage UK companies. Nearly 30 companies have been added since the fund's launch with many of these in the life sciences and biotechnology sectors - an area the manager plans to explore further with his new investment trust: Woodford Patient Capital.

AXA Framlington Biotech

Despite a spectacular run of performance over the past three years, the biotechnology sector just keeps going; over the six months to 1 July, the NASDAQ OMX Biotechnology index has returned close to 21% in sterling terms compared to a relatively paltry 1.75% from the MSCI World index and 3% from the FTSE All Share index. As such, Money Observer Rated Fund AXA Framlington Biotech is the second most-traded fund this year, with manager Linden Thomson continuing to deliver outstanding performance.

In the six months to 1 July the fund has returned 17.2% - pleasing by any measure, although admittedly below the NASDAQ index - while over one year it has returned 55% and 187% over three years. Despite the naysayers calling time on biotech Thomson says she remains "bullish" adding that "in an increasingly cost sensitive environment", she views biotech as one of the better positioned healthcare sectors.

Fundsmith Equity

Money Observer Rated Fund Fundsmith Equity remains a firm favourite with Interactive Investor fund buyers looking for global growth exposure, ranking as the third most traded fund of the year so far. Launched in 2010 by Terry Smith - a contrarian investor often labelled "controversial" for his outspoken views on the investment industry - Fundsmith Equity has delivered strong performance over the past three years, returning 61% compared to 3.4% from the sector.

Over the past six months, however, the fund has struggled, eking out just 0.66% and placing it in the bottom quartile of the sector. Its large exposure to the US (55%) - which has been a tailwind since its launch - has likely held it back over the period as the US's S&P 500 index was flat over the first half.

Artemis Global Income

Fellow Money Observer Rated Fund Artemis Global Income is another fairly new kid on the block, having also launched in 2010. While initially not as well-known as Terry Smith, manager Jacob de Tusch-Lec has carved out a solid reputation for himself with Artemis Global Income, which has delivered first quartile returns in every year since launch bar one. Over three years to 30 June the fund is the top performer in the global equity income sector with a return of 72%, while its yield of 3.4% makes it highly attractive to income seekers in the current low interest rate environment.

Unlike most global funds (particularly income funds) Artemis Global Income has the majority of its portfolio in Europe (39%) - which has likely proved a tailwind of late - while de Tusch-Lec also takes an interest in emerging markets in Asia, the Middle East and Africa.

Vanguard LifeStrategy 80% Equities

Vanguard's tracker funds have been climbing progressively higher and higher up Interactive Investor's most-bought charts this year, with an average of three funds now making it regularly into the monthly top 10. Multi asset fund-of-funds Vanguard LifeStrategy 80% Equities has been a consistent favourite, favoured for its good long term performance and low ongoing charges figure of just 0.24%.

Like Fundsmith Equity, however, the fund has suffered over the past six months from its high weighting to the US (40%), returning just 1.85% compared to an average of 3.2% from the Mixed investment 40-85% shares sector. Its smaller weighting in Europe - just 15% - has also likely proved a handicap of late.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.