Investors are staying grounded despite growing macroeconomic uncertainty and are sticking to their own investment objectives, says The Share Centre’s Andy Parsons (pictured right).
"We are seeing a real resilience in the market. Where in the past we may have seen swathes of irrational investing patterns during a period of economic uncertainty, many are now more willing to look beyond the current climate and focus firmly on their investment objectives," he said.
His comments come in light of The Share Centre’s top-selling funds data for February, which boasted a diverse and generally uncorrelated range of products.
In the past investors have flocked en masse to a specific area of investment during periods of uncertainty; however, the top-selling funds for February focused on everything from emerging market growth to agriculture.
Top-10 best sellers in February 2011
| Rank |
Name | Sector |
| 1 | Legal & General UK Index |
UK All Companies |
| 2 | Invesco Perpetual Latin America |
Specialist |
| 3 | BlackRock Gold & General |
Specialist |
| 4 | Invesco Perpetual Monthly Income Plus |
Sterling Strategic Bond |
| 5 | Legg Mason Japan Equity |
Japan |
| 6 | JPM Natural Resources | Specialist |
| 7 | Aberdeen Emerging Markets |
Global Emerging Markets |
| 8 | First State Indian Subcontinent |
Specialist |
| 9 | Smith & Williamson Global Gold & Resources |
Specialist |
| 10 | First State Global Agribusiness |
Specialist |
Source: The Share Centre
The best-selling fund, the Legal & General UK Index tracker fund, is the default investment option for investors who had their child trust-fund vouchers invested via The Share Centre and did not select their own fund. Parsons expects this fund to feature in the top-five best-selling funds for some time.
On the other results, Parsons commented: "The second most popular fund for February is the Invesco Perpetual Latin America fund. Funds that focus on a specific region of the world are increasing in popularity as investors seek to move away from a broader general emerging market fund."
"In third and fourth place are the BlackRock Gold & General fund and the Invesco Perpetual Monthly Income Plus fund. The former is often an investment choice for those worried about issues such as inflation, interest rates and economic certainty, whereas the latter has no doubt been selected by those looking to supplement their income, as its yield is currently around 6.32 per cent."
In fifth place is the Legg Mason Japan Equity fund, followed by the £2.6bn JPM Natural Resources fund. The latter vehicle offers diversification across key commodity areas including precious metals, base metals and energy.
The next two best sellers are Aberdeen Emerging Markets and First State Indian Subcontinent.
"Despite inflationary pressures in India, investors are still happy to look at investing within the region via the [First State] fund," Parsons continued.
The final two funds – Smith & Williamson Global Gold & Resources fund and the First State Global Agribusiness fund – have never featured in the top sellers list before.