Interactive Investor: AI hype carries into 2024 as tech dominates platform sales

Retail investor focus on the AI megatrend shows no sign of letting up, with tech funds topping Interactive Investor’s most bought funds list for January.

Tracker fund L&G Global Technology Index was the most bought fund in the month, ahead of Vanguard Lifestrategy 80% Equity and Fundsmith Equity.

Polar Capital Technology and Polar Allianz Technology both featured among the most-bought investment trusts, while ever-popular Scottish Mortgage was once again the most purchased trust.

See also: Chinese property sector woes continue to weigh on fund performance in January

Interactive Investor deputy collectives editor Kyle Caldwell said: “L&G Global Technology Index holds five of the so-called Magnificent Seven stocks in its top 10 positions, with the two exceptions being Amazon and Tesla. Investors buying this passive strategy need to be comfortable with its top two holdings having huge individual weightings of 17%, which are Apple and Microsoft.

“Both Allianz Technology and Polar Capital owns six of the seven American tech giants in their top 10 holdings, asides from Tesla. As well as AI, another key sector for the duo is cybersecurity.

“Scottish Mortgage, the most-popular investment trust with our customers in January, also provides exposure to the AI theme. The innovation-focused portfolio recently bought back shares in Meta (formerly known as Facebook), and also owns Nvidia.”

In terms of individual stocks, Helium One Global was top of retail investor buylists. while Magnificent Seven members Tesla and Nvidia were also among the must purchased.

Victoria Scholar, Interactive Investor head of investment, added: “As usual, FTSE 100 heavyweights continue to attract strong demand from interactive investor customers with Lloyds, L&G, Glencore, and BP landing on the list of most bought stocks on the ii platform in January. JD Sports is a new member on the list. After a rough start to the year with shares plunging 20% after a profit warning, its discounted price has attracted opportunistic investors to purchase shares.

“In the United States, despite an extremely challenging start to 2024 for Tesla, investors continue to purchase shares, perhaps taking the EV giant’s slide since December as an opportunity to load up on more stock. Unlike Tesla however, Nvidia continues to go from strength-to-strength in 2024 – it has become a proxy play for the artificial intelligence market frenzy. It has reclaimed its spot among the most popular stocks on the ii platform to start the year, and its shareholders have enjoyed a 27% jump this January alone, extending last year’s surge.”