August's 10 most-bought funds

The top 10 most-bought funds on Interactive Investor were largely unchanged in August, with CF Woodford Equity Income taking the top spot for the 14th consecutive month.

The first fund from star fund manager Neil Woodford's eponymous investment house, CF Woodford Equity Income, has been the most-bought fund on Interactive Investor since the fund's launch in June 2014.

Since then it has grown from £1.6 billion to £6.7 billion in size (as at 31 July), while it has consistently ranked within the top quartile of performers in the Investment Association's UK equity income sector.

Money Observer Rated Funds Axa Framlington Biotech and Fundsmith Equity were the second and third best-selling funds last month, holding onto their positions for nine and six consecutive months respectively.

Tracker reign

Continuing their newfound reign over Interactive Investor's top 10, a total of four Vanguard tracker funds made it into the table in August, with the firm's multi-manager LifeStrategy series proving enduringly popular.

Vanguard LifeStrategy 80% Equities was the fourth most-bought fund in August, moving up one place from fifth in July, while Vanguard FTSE UK All Share Index was the fifth, up from eighth the previous month.

However, both funds have delivered poor returns over the past year as the widespread sell-offs seen in August have impacted their performance - a common problem with index tracker funds in down markets.

Over one year Vanguard LifeStrategy 80% Equities has returned 0.3% compared to an average of 1.4% from the IA mixed investment 40% to 85% shares sector.

Vanguard FTSE UK All Share Index has fared even worse, shedding 4.2% in the 12 months to 18 September compared to an average gain of 2% from the UK all companies sector.

Similarly, Vanguard LifeStrategy 100% Equities and Vanguard LifeStrategy 60% Equities - which were the eighth and ninth most-bought funds in August respectively - have largely underperformed their sectors over one year.

The other perennial favourites holding onto their places in Interactive Investor's top 10 in August were Money Observer Rated Funds Neptune UK Mid Cap and Artemis Global Income, in sixth and seventh position respectively. Invesco Perpetual High Income returned as the 10th most-bought fund after being knocked briefly out of the table in July.

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.