UK Equity Income tops Cofunds list in May

UK Equity Income tops Cofunds list in May

The Investment Association’s UK Equity Income sector was the most popular among Cofunds customers in May, but investors could be drawn to fixed-income funds in future.

The Property sector was knocked into second place in May, followed by Targeted Absolute Return, Mixed Investment 40-85 per cent Shares and Mixed Investment 20-60 per cent Shares.

Britt Holland-Ellice, head of fund group relations for Cofunds, said: “Given current market volatility, it is no surprise to see the prominence of funds that aim to deliver regular, stable returns, predominantly from the lower-risk and flexible, multi-asset style sectors.”

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She added: “We expect it will be worth keeping a close eye on the popularity of fixed-income funds and the more flexible strategic bonds, especially as we near the point where the US and UK consider raising interest rates.”

Ranking for MayIA sector
1UK Equity Income
3Targeted Absolute Return
4Mixed Investment 40-85% Shares
5Mixed Investment 20-60% Shares

Source: Cofunds

Adviser view

Marvin Evans, principal of Gloucestershire-based Old Bank Wealth Management, said: “I tend to use model portfolios, but I can understand why people are going into equity income, as long as they are investing for the long term.”