Best-selling funds, investment trusts and ETFs of August 2023

August remained a tricky time for investors as nerves remain about potential future recessions, and the short-term power of cash remains compelling. When interest rates are 5.25%, the so-called ‘risk premium’ we expect from investing gets higher and fewer investors are convinced it’s worth it.

There are also very few pockets of perceived opportunity, meaning investors are playing it relatively safe, avoiding big sector or regional bets and backing large, diversified global funds.

Once again in August we saw investors piling into the relative haven of short-term money market funds. Royal London’s fund is a perennially popular option, with abrdn’s Sterling Money Market fund making it to the bestsellers on Hargreaves Lansdown.

Huge passive fund producer Legal and General is also taking in money, as investors embrace its cash trust but also its low-cost Global Technology Index fund. With an Ongoing Charge Figure of just 0.32%, and featuring investor darling Nvidia as its third largest pick making up over 7% of this fund, it’s a low-cost way to access a large global basket of tech stocks.

Finally Terry Smith continues to do no wrong in the eyes of investors and Fundsmith keeps its spot in the investors’ Hit Parade.