Investors are continuing to pile into index tracker funds, with technology funds also popular despite some of the largest tech companies encountering a difficult start to 2024, according to fund manager Fidelity International.

Five of the Fidelity platform's Top 10 selling ISA funds in April were Index funds.

Fidelity said stock markets were boosted last month by the buoyancy of corporate earnings which helped offset concerns that rates will stay higher for longer.

The figures back up recent data suggesting investors are returning to equity-based funds.

Meanwhile, the belief that US interest rate cuts will take longer to come through is showing up in the currency markets where the prospect of higher yields makes dollar assets increasingly attractive. 



Money market funds made a return to the best-seller lists in the month as interest rates expectations became more hawkish.

The best-selling funds on Fidelity Personal Investing in April

Source: Fidelity International. Net ISA and SIPP sales in April 2024

Ed Monk, associate director, Fidelity International, said: “The popularity of the Legal & General Global Technology Index Trust underscores the appeal of tech-focused investments, scoring well for ISA and SIPP investors. The top seven companies, known as the magnificent seven, have been driving much of the gains for the year - but returns from the group are not evenly spread between them, with losses being registered by Tesla and Apple so far in 2024. 



“Customers are also placing themselves to benefit from rising markets worldwide through their exposure to global funds such as the Legal & General Global Equity Index Fund and Legal & General Global 100 Index Trust. These funds offer exposure to diverse international markets, providing investors with opportunities for growth and portfolio diversification while minimising risk and enabling a well-balanced investment strategy.”

He said the Jupiter India Fund maintained its popularity throughout the year, “but with a general election (in India) currently under way, investors will be watching for any signs of increased market volatility over the 44-day long election, which will end on 1 June.”