Global, tech and US concentrations remained the most-bought funds among Hargreaves Lansdown clients in January, despite unease in the market following innovations by DeepSeek.
While investors continued to pour faith into the US market, the UK has continued to struggle, with Hargreaves Lansdown reporting that UK funds are less popular than they were three years ago.
See also: Who are the winners (and losers) of the FTSE 100?
Kate Marshall, lead investment analyst for Hargreaves Lansdown, said: “Rewind to three years ago and there are some similarities – there were also a handful of global and US funds and trusts among the most bought. But the UK also had some favour, particularly in mid-sized and dividend-paying companies (via the likes of HSBC FTSE 250 Index and City of London Investment Trust).
“There’s since been a clear change in the attractiveness of UK assets for investors. Calls for change in UK business investment and economic growth should eventually see money flow back into the UK, and valuations and opportunities for income look attractive. Overall, investors should ensure they maintain exposure to different regions for when the tide turns.”
See also: Portfolio Adviser Spring Congress 2025
The most-bought funds of 2025 have so far included the UBS S&P 500 Index, Legal & General US Index, Legal & General International Index trust, Fidelity Index World, and Legal & General Technology Index trust. Of the top 10 funds purchased by Hargreaves Lansdown clients, six remain the same as 2020.
Investment trusts have seen slightly more turnover across the past five years, with just four of the same companies in the top 10. Scottish Mortgage Investment Trust, which was the best-selling trust in 2020, remains in the top spot in 2025. It is followed by F&C Investment trust and JP Morgan Global Growth & Income.
“Investments in passive funds continue to gain momentum. With a narrow group of companies leading major stockmarkets, like the US, throughout the year, active funds have found it difficult to add value for investors. This has seen many investors turn to passive funds to gain exposure to these areas. Active managers need to demonstrate their flair for stockpicking in a market led by a more diversified range of stocks, but this trend is set to continue in 2025,” Marshall said.
“That said, there are some more niche plays in the most bought investment trusts, like those linked to renewables, such as Greencoat UK Wind, which invests in operating onshore and offshore UK wind farms. Trusts like this could benefit from an increased focus from the government on renewable energy, but they’re also more specialist, which means periods of volatility should be expected.”