Top 10 best-selling ISA and SIPP funds of 2024

Funds at opposing ends of the risk spectrum dominated the top-10 best sellers at Fidelity Personal Investing over the year. On the one hand, funds with a high exposure to the US stock market – in particular, world index trackers and technology funds – featured consistently. On the other, money market funds put in a very strong showing, as some investors eschewed stock market risks and opted for a low risk, cash-like return of around 5% instead. 

World stock markets continued to register good progress in 2024, as fundamentals ultimately trumped political upheaval. In a year when more than half of the world’s population went to the polls, factors including rising company earnings and falling interest rates proved decisive factors.

US shares and the dollar were firmly in the driving seat after the US economy avoided falling into a recession in the first half. A robust US consumer and buoyant demand for AI-related semiconductor stocks outweighed concerns about high valuations. 

The FTSE 100 reached a record high in April, just prior to the surprise announcement of a UK general election. Shares traded sideways in the months after that, however, partly as a result of caution surrounding the new government’s tax and spending plans. 

Japan’s Nikkei 225 Index finally breached its 1989 historic peak in February, before scaling even greater heights during the summer. Gains were eventually capped by a rise in Japanese interest rates, counter to the global trend. In China, the stock market mapped a volatile course, as investors weighed fundamental economic weakness against government measures to boost growth.

The Fidelity Index World Fund was the most bought fund for ISAs and second most popular choice for SIPPs over the year. This fund tracks the MSCI World Index on a net total return basis with returns automatically converted back into sterling. With the US accounting for almost three quarters of the Index and America’s “Magnificent Seven” technology stocks dominating the top-10 holdings, returns from this approach were strong.
  
The Fidelity Cash Fund took the same two places in reverse order. For SIPP purchases, the Fidelity Cash Fund was joined by two other money market funds – the Royal London Short Term Money Market Fund and the Legal & General Cash Trust – in third and seventh respectively.

The SONIA interest rate benchmark against which the first two funds are measured remained steady for much of the year before dipping in August then again in November, on both occasions after the Bank of England cut its Bank Rate¹. The Legal & General Cash Trust differs from the other two funds in that it is benchmarked to its money market fund peers.

Expectations about further rate cuts in 2025 have moderated a little following the Budget, which is anticipated to result in a mild uplift in inflationary pressures, as well as the latest official data that showed inflation rose to 2.3% in October². The latest from the Bank of England is that the Bank Rate is seen falling to around 3.7% by the end of next year³. 

Next was the first of two funds dedicated to the global technology sector. The Legal & General Global Technology Index Trust was a persistent favourite throughout the year and ended up being the third best seller for ISAs and fourth most popular for SIPPs. This fund tracks the FTSE World Technology Index so has automatically emphasised today’s conspicuous winners from the AI revolution. While the fund has 255 holdings, Apple, Nvidia and Microsoft currently account for around 45% of the portfolio between them⁴. 

The Fidelity Index US Fund – in fourth for ISAs and fifth for SIPPs – was also sought after throughout the year and its popularity only increased following the US election in November. Tracking the S&P 500 Index on a net total return basis, the fund captured the “Trump Bump” seen across US markets in the final stages of the year. As for the preceding fund, Apple, Nvidia and Microsoft are the current top holdings.

The Fidelity Global Technology Fund was the highest ranked actively managed equity fund of the year. Its makeup differs significantly from indexed funds because it has the flexibility to stray greatly from its benchmark. Taiwan Semiconductor, the foundry for high-end Nvidia AI chips, currently accounts for around 6.6% of the portfolio, slightly ahead of Microsoft (6.0%) and Apple (4.5%). Sweden’s Ericsson and Texas Instruments also feature among the top 10 holdings. 

In sixth position for ISAs, the Legal & General UK Index Trust was the only fund investing solely in UK equities to make either top 10. This fund, which topped the ISA best sellers list in June, tracks the FTSE All-Share Index on a net total return basis and does so by holding positions in all, or substantially all of the shares in the Index. 

The Fidelity Global Dividend Fund – in seventh for ISAs and ninth for SIPPs – was the only equity income fund to feature in these tables. This fund aims for a dividend based total return, with capital preservation its top priority. The fund continued to register good progress over the year, despite being significantly underweight the US and overweight Europe. Manager Dan Roberts currently sees opportunities in the industrials sector (about 18% of the portfolio) given ongoing themes such as electrification, automation and re-shoring. Financial services companies still account for the largest sector weighting, at just over 27%. 

• Watch Dan Roberts, portfolio manager of the Fidelity Global Dividend Fund, share his case for global investing at our mid-year Wealth Investor Forum. 

The Jupiter India Fund entered and exited the top-10 best sellers lists several times and was the eighth most bought fund for ISAs for the year as a whole. This fund’s highly selective investment approach has worked well over the longer term and thefFund proved to be the default choice for many investors looking for an exposure to India in 2024.
 
India’s stock market benefitted from both local and foreign buying over the year, amid a strong growth outlook and coincident economic difficulties in China. The year was not without its challenges, however. The market faltered in June after the ruling BJP lost its parliamentary majority and it traded lower in the autumn after the international focus switched to the potential for a Chinese stimulus-led recovery. The outlook, however, seems to remain bright. In October, the IMF upgraded its 2024 economic growth forecast for India to 7.0%⁵. 

Around the lower reaches of both tables, the Legal & General Global Equity Index Fund was a little more popular with SIPP investors than ISA investors. This fund aims to deliver a combination of growth and income by tracking the FTSE World Index. 

The Vanguard LifeStrategy 80% Equity Fund completed the top 10 for SIPPs. While this fund invests mostly or entirely in index tracking funds from the Vanguard stable, there is an active element to it in that the manager decides which funds are selected and how much is allocated to each. Currently, the fund has holdings in 10 equity funds and four bond funds. It also has a strong tilt to the UK compared with world markets, with UK shares and bonds making up around a quarter of the portfolio⁶.

Top 10 best-selling ISA funds on Fidelity Personal Investing in 2024

1. Fidelity Index World Fund 

2. Fidelity Cash Fund 

3. Legal & General Global Technology Index Trust 

4. Fidelity Index US Fund 

5. Fidelity Global Technology Fund 

6. Legal & General UK Index Trust 

7. Fidelity Global Dividend Fund 

8. Jupiter India Fund 

9. Legal & General Global Equity Index Fund 

10. Royal London Short Term Money Market Fund 

Top 10 best-selling SIPP funds on Fidelity Personal Investing in 2024

1. Fidelity Cash Fund 

2. Fidelity Index World Fund 

3. Royal London Short Term Money Market Fund 

4. Legal & General Global Technology Index Trust 

5. Fidelity Index US Fund 

6. Fidelity Global Technology Fund 

7. Legal & General Cash Trust 

8. Legal & General Global Equity Index Fund 

9. Fidelity Global Dividend Fund 

10. Vanguard LifeStrategy 80% Equity Fund 

Source: Fidelity International. Gross ISA and SIPP sales for Personal Investors only. From 1.1.24 to 10.12.24

Sources 

¹ Bank of England, 12.12.24
² ONS, 20.11.24
³ Bank of England, 07.11.24
⁴ LGIM, 31.10.24
⁵ IMF, October 2024
⁶ Vanguard, 31.10.24

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing into a fund, please read the relevant key information document which contains important information about the fund. Eligibility to invest in a SIPP or ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a SIPP will not normally be possible until you reach age 55 (57 from 2028). Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment.  If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.