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    • Fidelity investors turn away from technology funds in August, seeking stability amid market volatility – Fidelity International
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    Fidelity investors turn away from technology funds in August, seeking stability amid market volatility – Fidelity International

    Idris Bevan Posted on

    • Fidelity Personal Investors has turned away from technology-oriented funds
    • Given market volatility, there was a significant shift towards diversification and defensive investments in August
    • Global growth opportunities remained extremely attractive to investors, as reflected in the popularity of funds and mutual funds that offer international exposure.

    August was a month of ups and downs for investors, with global equity markets experiencing significant volatility. Many market indices recorded sharp declines in early August, triggered by fears that the US was heading for a recession. But in the end, the recession was over as quickly as it began, and markets around the world recovered much of the lost ground.

    The last two months have been bumpy for AI stocks and one reason for the market turmoil has been the exodus from the highly valued Magnificent Seven stocks due to concerns about the sustainability of the AI ​​growth story. In fact Fidelity International (“Loyalty”) ISA and SIPP investors are broadening their horizons beyond the sector, as evidenced by a remarkable turnaround in Fidelity Personal Investing’s best-selling funds in August.

    Technology-focused funds were the focus for Fidelity ISA and SIPP investors for much of the year. Legal & General Global Technology Index Trust a consistent top 10 bestseller. August, however, was a different story, as investor enthusiasm waned noticeably and there was a shift toward more diversified and defensive assets.

    Best-selling funds at Fidelity Personal Investing in August 2024

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

    Tom Stevenson, Investment Director at Fidelity International, commented: “The technology sector has had a brilliant run, but the last month has been bumpy. Nvidia has had the biggest impact on the stock market this year, with a high correlation between the company’s price movements and those of the overall market, and the value of the company – briefly the largest in the world – fell by about $750 billion in July and August before recouping all of its lost market capitalization in a matter of trading days.

    “We are seeing a classic shift towards safety as investors seeking stability seek to preserve their capital in times of market volatility. As part of this shift, money market funds have become very attractive again – they offer liquidity and safety, funds like the Royal London Short-Term Money Market Fund And Fidelity Equity Fund continue to be popular with Fidelity’s ISA and SIPP investors.

    “In addition to the exit from the technology sector, August saw a rise in interest in funds focused on global diversification and emerging markets. A new addition to the top ten for ISA investors is the HSBC FTSE All Share World Index Fundsuggesting that investors are seeking broader exposure in light of global economic uncertainties. In particular, emerging market funds such as the Fidelity China Focus Fund And Jupiter India Fund also attracted great interest and highlighted the strategic focus on regions with growth potential.”


    Top-selling stocks at Fidelity Personal Investing in August 2024

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

    Tom Stevenson continues: “In August, Fidelity investors showed a shift in their investments, broadening their focus to a broad range of sectors such as consumer goods, technology and industrials. Despite a move away from technology funds in August, notable stock picks for ISA investors were AlphaWave IP Group which appeared in the top ten best-selling ISA investors list for the first time, despite the volatility seen in technology funds. Given the continued demand for semiconductor technology, particularly in the AI ​​and data centre sectors, AlphaWave emerged as a top choice.

    “Riding the wave of cruise tourism is carnival which appeared in the top ten bestseller list for ISA investors in August. The stock has risen significantly in recent months, supported by strong booking momentum for 2025. Used car dealers, Motorpoint Groupappeared in the list of best-selling cars for the first time and, despite falling sales and increased pre-tax losses, ISA investors consider it an attractive choice, reflecting the strong performance of the used car market.

    “For SIPP investors, home builders Nicholson coat of arms entered the market after rejecting a takeover offer from its competitor Bellway.”

    Top-selling mutual funds at Fidelity Personal Investing in August 2024

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

    Tom Stevenson continues: “Despite the move away from technology funds, Fidelity’s ISA and SIPP investors continue to find technology-focused investment funds attractive. Polar Capital Technology Trust continued to see significant inflows, securing its position as one of the top options for the second month in a row. In addition, Allianz Technology Trust was also strongly represented in the rankings for SIPP investors.

    “Beyond technology, global growth remained a key theme for Fidelity investors in August. JP Morgan Global Growth & Income Trust attracted a lot of interest, particularly from ISA investors, as it offers a diversified approach to investing in high-quality companies worldwide. SIPP investors also showed growing interest in trusts with a focus on diversification and defensive strategies. The F&C Investment Trustone of the oldest mutual funds, continued to record inflows.”

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    Idris Bevan
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