January's 10 most-bought funds

Neil Woodford's first eponymous open-ended fund, CF Woodford Equity Income, was the most-bought fund on the Interactive Investor platform in January, having held the top spot since its launch in June 2014.

Investors have been rewarded for their faith in the star manager, whose disciplined, valuation-oriented approach has consistently delivered long-term performance to his clients. The fund has returned 4.7% over one year to 3 February 2016.

It launched with a record-breaking £1.6 billion of assets under management; however, since then it has grown to £8.1 billion.

Also holding onto its place in the top table is one of our sister magazine Money Observer's Rated Funds, Fundsmith Equity, which has over half of its assets in US equities. It was the second most-bought fund in January.

Managed by contrarian investor Terry Smith, the global equity fund has returned 12.1% over one year and 64.1% over three years to 3 February.

Passive trackers gain popularity

Axa Framlington Biotech was in fifth place in December and has gone up two places to be the third most-bought fund in January.

Half of the 10 most-bought funds in January were passive index tracking funds, including four by Vanguard - Vanguard LifeStrategy 80% Equity, Vanguard LifeStrategy 100% Equity, Vanguard FTSE UK All Share Index and Vanguard FTSE Developed World ex UK Equity Index - as well as HSBC FTSE 250 Index.

The popularity of passive funds has grown among Interactive Investor users. The last time five index trackers made the top 10 most-bought list was September 2015.

In the meantime, another Money Observer Rated Fund, Lindsell Train Global Equity, dropped four places since December to be the eighth most-bought fund in January. It has been managed by Michael Lindsell since its launch in March 2011.

The fund has performed well, with returns of 11.8% over the past year, while over the last month it has shed just 0.9% compared to an average loss of more than 5% from the Investment Association's global sector.

Money Observer Rated Fund Artemis Global Income dropped four places from fifth place in December to be the ninth most-bought fund in January.

And MFM Slater Growth, which was the third most-bought fund in December, has dropped out of the top 10 to 12th place.

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.