Money market funds continued to prove popular with retail investors in July amid the higher interest rate environment.
Among the top five active funds bought by investors using the Hargreaves Lansdown (HL) platform were the £6.7bn Royal London Short-Term Money Market Fund and the £641m Abrdn Sterling Money Markets.
Money market strategies provide investors with an opportunity to earn income on cash with less sensitivity to rate rises than conventional bond funds.
The asset class has grown in popularity over the last 18 months after a series of interest rate hikes from the world’s central banks.
The Royal London Short-Term Money Market Fund is a top-quartile performer over one, three and five years in the IA Short Term Money Market sector, according to data from FE Fundinfo.
See also: Money market funds grow 306% at Interactive Investor
Elsewhere, the newly-launched HL Global Corporate Bond was the most bought actively-managed strategy on the platform in the month. The fund opened on 20 July and currently stands at £529m.
Forming part of the platform’s ‘Building Blocks’ stable, the strategy aims to invest at least 80% in investment-grade corporate bonds and up to 20% in other debt instruments.
In the passive universe, Fidelity Index World topped the charts, while three L&G trackers also gained traction.
Technology strategies also recorded high sales last month, with the £121.3m Liontrust Global Technology and tracker fund L&G Global Technology Index Trust both among the most purchased strategies.
Most bought funds in July on HL platform
| Most bought active funds | Most bought passive funds |
|---|---|
| HL Global Corporate Bond | Fidelity Index World |
| Royal London Short-Term Money Market | L&G Global Technology Index Trust |
| Liontrust Global Technology | L&G International Index Trust |
| Legal & General Cash | L&G US Index |
| Abrdn Sterling Money Markets | UBS S&P 500 Index |
See also: IA China/Greater China sector tops returns in July
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