Here are the top 10 funds that Hargreaves Lansdown investors bought for their ISAs last month

Edward Sheldon highlights the top 10 funds that Hargreaves Lansdown ISA investors put money into last month. You may be surprised at some of the names.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Keeping an eye on what other investors are doing can be a great way to generate investment ideas. With that in mind, today I’m going to highlight the top 10 investment funds that Hargreaves Lansdown investors bought for their Stocks and Shares ISAs last month. 

You may be surprised at some of the funds on the list. 

Hargreaves Lansdown investors bought these funds

The top 10 funds Hargreaves Lansdown clients bought for their ISAs in August (in alphabetical order) were:

  • Baillie Gifford American

  • Baillie Gifford European

  • Baillie Gifford Global Discovery

  • Baillie Gifford Long Term Global Growth

  • Baillie Gifford Managed

  • Baillie Gifford Positive Change    

  • Fundsmith Equity

  • Legal & General Global Technology Index

  • LF Blue Whale Growth

  • Rathbone Global Opportunities 

Global focus 

The thing that stands out about this list is that Hargreaves Lansdown investors are diversifying into international shares. This is great news. The UK has many world-class companies. But to fully diversify your portfolio, you need to have exposure to international shares too. 

Traditionally, UK investors mainly stuck to the UK stock market when investing in shares. This is known as investing with a ‘home bias’. However, it seems that Hargreaves Lansdown investors are not making this mistake. This list of funds suggests that they are thinking globally, which is a very smart move. 

Technology theme 

Secondly, technology is a dominant theme here. Most of these funds have high weightings to the tech sector. Baillie Gifford American, for example, had 28.3% weighting to the tech sector at 31 July. Its top holdings include Shopify, Tesla, and Amazon

The Legal & General Global Technology Index is a low-cost index fund that tracks technology companies in the FTSE World index. Personally, I see this fund as a slightly riskier way to play the technology theme. That’s because around 30% of the fund is allocated to just two stocks – Apple and Microsoft. This means there’s a higher level of stock-specific risk. Having some exposure to technology in your portfolio, however, is a wise move.    

Sustainable investing

Another observation is that there’s a sustainable fund in the mix – the Baillie Gifford Positive Change fund. This fund aims to invest in companies that are contributing towards a more sustainable and inclusive world. I’ve commented before that interest in sustainable investing has increased significantly in recent years. 

In the past, many sustainable funds underperformed the broader market. However, today, plenty of sustainable funds are delivering fantastic returns for investors. This particular fund has returned 67% over the last year according to Hargreaves Lansdown, which is a phenomenal return. 

Under-the-radar funds

Finally, it’s good to see some under-the-radar funds, such as Blue Whale Growth, on the list. This is a fantastic little fund that has delivered excellent returns for investors since its launch just over three years ago. Over the last 12 months, it has returned 24.3% according to Hargreaves Lansdown, comfortably beating some of its bigger rivals such as Fundsmith (13.7%) and Lindsell Train Global Equity (1.6%). 

The takeaway here, if you invest in actively-managed funds, is that diversifying your portfolio across a number of different funds with different investment styles can pay off. Not only can it potentially enhance your returns but it can also potentially lower your overall portfolio risk. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon owns shares in Hargreaves Lansdown, Apple and Microsoft, and has positions in Fundsmith Equity and Blue Whale GrowthJohn Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Apple, Microsoft, Shopify, and Tesla. The Motley Fool UK has recommended Hargreaves Lansdown and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »