November's 10 most-bought funds

CF Woodford Equity Income was the most-bought fund on the Interactive Investor platform for the 17th consecutive month in November.

Managed by celebrity fund manager Neil Woodford, the fund has been the most popular among Interactive Investor clients since its launch in June 2014. With initial assets under management of £1.6 billion, the fund has now swelled to over £8.1 billion.

This makes it the largest fund in the Investment Association's (IA's) UK equity income sector, having overtaken Artemis Income (£6.8 billion) earlier this year.

There was also no change among the second and third most-bought funds last month, with Fundsmith Equity and Axa Framlington Biotech - two of our sister magazine Money Observer's prestigious Rated Funds - both holding onto their spots from October.

Positive Month

November was a particularly positive month for Axa Framlington Biotech, with manager Linden Thomson delivering a 6.3% return - the best of the top 10. This follows a volatile period for the biotechnology sector, as summer sell-offs combined with concerns over moves to cap drug prices in the US drove stocks lower.

Mixed asset tracker fund Vanguard LifeStrategy 80% Equities also held onto its place as the fourth-most-bought fund in November. The number of tracker funds in the top 10 remains diminished, however, having fallen from a record of five in September to three in October and last month.

Vanguard LifeStrategy 100% Equities and Vanguard FTSE UK All Share Index were the other two tracker funds to make the list, with the former falling two places to ninth, while the latter re-entered the table in 10th place.

Commenting on tracker funds' dip in popularity, Rebecca O'Keefe, head of investment at Interactive Investor, says: "The current investment landscape is a very difficult one for investors.

"The traditional Santa rally is being offset by global manufacturing concerns, weak commodity prices and expectations for an imminent rate hike by the US Federal Reserve, which makes stock and sector selection key to success.

"This perhaps explains why there has been a shift away from passive tracker funds into active funds, which tend to outperform in challenging market conditions."

Lindsell Train Global Equity was the fifth most-bought fund in November, rising three places from October, while Money Observer Rated Fund Artemis Global Income held onto sixth place.

Fellow Money Observer Rated Fund Neptune UK Mid Cap fell two places to seventh, marking a disappointing period as the fund shed 0.1% over the month - compared to a gain of 0.9% from the average fund in the UK all companies sector over the same period.

MFM Slater Growth climbed two places to eighth-most-bought fund in November as manager Mark Slater continues to deliver strong returns; over three years to 30 November the fund has returned close to 80%, compared to just 35% from the UK all companies sector.

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.