Vanguard tops best-selling funds for Isa and Sipps
The low-cost fund provider dominated Alliance Trust Savings' top 20 chart of the best-selling funds for Isas and Sipps on its i.nvest platform in the last tax year.
Vanguard had six funds among the top 20 purchased by Sipp customers, and four funds among the 20 best-selling funds among Isa customers. The most popular fund in the Sipp was Vanguard's FTSE Developed World Ex-UK Equity Index, while the most popular fund in the Isa category was Vanguard's FTSE UK Equity Index.
Other top sellers included Axa Global High Income, Standard Life Investments Global Absolute Return Strategies, Aberdeen Emerging Markets and Fidelity Investments Moneybuilder UK Index.
Garry Mcluckie, head of sharedealing for Alliance Trust Savings, said: "Our comparison of Isa and Sipp fund inflows has shown similarities in the investment behaviour of our Isa and Sipp customers. Our customers continue to show a thirst for choice and value for money when selecting funds with low annual management charges or high rebates to ensure that they minimise the effect of fund charges on their investment."
Carl Melvin, managing director of Glasgow-based Pension Transfer Solutions, said passive investment was gathering momentum among fee-based advisers
He said: "Alliance Trust's platform is favoured by fee-based advisers and direct investors because it does not pay commission to intermediaries so I am not surprised at this trend of using low-cost funds.
"Fee-based advisers are turning to passive funds because of the reduced risk and low cost and a belief that active funds cannot consistently outperform the markets. I would expect index funds to feature quite heavily in the top performing funds."