It has been a sunny summer for investors. Stock markets around the world hit fresh highs in August, helped by bumper company results. There is palpable unease in the markets, however. Inflation fears have pushed up bond yields worldwide, and a huge wave of AI spending is creating uncertainty of its own.
Personal investors are responding in different ways. While growth is high on the agenda, there are signs of caution too.
Read on for the top 10 ISA and SIPP funds in August.
Different kind of tracker
‘Concentration risk’ is the danger of having too much money tied to one thing. It is a growing concern, given the mammoth size of the US tech scene. North America accounts for almost two thirds of the global stock market, and just five companies make up 30% of the US market.
When you buy a standard tracker fund, which gives greater weight to larger companies, you can end up very exposed to a handful of stocks – sometimes without realising it.
One alternative is an ‘equal-weighted’ tracker fund. The Legal & General S&P 500 US Equal Weight Index Fund – which features on our Select 50 – was a top pick for SIPP customers last month.
These allocate the same importance to small companies as huge ones like Nvidia. As such, they are an easy way to scale back your Big Tech exposure, and to invest in less glitzy sectors like utilities and healthcare.
Passive giants
That said, traditional trackers remained popular in August. Fidelity Index World Fund, Vanguard FTSE Global All Cap Index, HSBC FTSE All World Index and Legal & General Global Equity Index Fund all made the cut.
These funds let you invest in companies around the world for a relatively low fee: they have ongoing charges of between just 0.12% and 0.23%.
It is easy to think that all tracker funds are the same, but they’re not. The Vanguard fund is more diversified than many, investing in developed and emerging markets. Its top 10 holdings represent just over a fifth of the total portfolio. In contrast, the Fidelity fund focuses exclusively on developed markets, and its top 10 holdings represent 26% of the total portfolio. The HSBC and L&G funds sit somewhere in between.
• Read: Which global index fund is best for you?
Some investors took a narrower focus in August, buying the Legal & General Global 100 Index Trust, which tracks the world’s 100 biggest stocks, and UBS S&P 500 Index Fund, which tracks only the US market.
Growth at a reasonable price
It is not all about passive investing, however. ‘GARP’ – which stands for ‘growth at a reasonable price’ – is attracting plenty of interest too. In simple terms, this strategy tries to find companies that are growing faster than the market but which are also cheaper than their peers.
Artemis SmartGARP Global Equity Fund does this in an unusual way. Rather than relying on human stock-pickers, it has an in-house software tool that screens thousands of companies and millions of data points every day. The most promising stocks are then reviewed by a fund manager.
The fund has 108 holdings and about 45% of the portfolio is in the US, as of the end of July. There is an eclectic mix of names, with tech superstars such as Alphabet sitting alongside General Motors and Citigroup. The biggest holding is South Korean giant Samsung Electronics.
‘Ready-made’ retirements
Some investors are looking beyond equities. The Fidelity Multi Asset Allocator Growth Fund was a hit with both ISA and SIPP customers in August.
This multi-asset fund forms the basis of Fidelity’s Retirement Builder and is a fuss-free investment option for customers who want stable growth and a diversified portfolio.
The fund is split roughly 60/40 between higher-risk assets like shares and lower-risk assets like bonds. By spreading their money across different asset classes, investors are hoping for less volatility and smoother returns over the long term.
Retirement Builder is designed to be medium-risk and low-cost, and suits customers who want to invest in their pension but don’t know where to get started.
Cash funds
Cash took more of a back seat in August, but some familiar names still cropped up on the SIPP best-sellers list, including the Royal London Short Term Money Market Fund and the Fidelity Cash Fund.
Money market funds – also known as cash funds – act a bit like variable-rate savings accounts. They are very low risk and aim to track UK interest rates. They do this by investing your money in things like government debt and bonds from reputable companies. Savers’ money is pooled with other investors and used to purchase these assets in the pursuit of growth.
The trajectory of interest rates has also changed since the Middle East conflict. At the start of 2026, people thought the Bank of England would cut rates this year. However, rates have been held at 3.75% since last December and traders expect a hike within the next six months. The return you can get from low-risk money market funds is looking more attractive, therefore.
Income hunters
People are looking for income in other places too. Artemis Global Income reappeared on the best-sellers list in August after a very brief absence.
This actively managed fund is heavily weighted towards the financial sector and holds some tech companies as well, but the management team notes that the sector isn’t a rich source of dividends.
The fund stands out for its recent success – and its focus on lesser-known companies. It has recently reshuffled its portfolio, taking some profits in chipmakers, miners and defence contractors and using the proceeds to add new positions in more defensive areas such as pharmaceuticals and food producers.
Precious metals
After a bruising few months, gold is showing signs of life. SIPP investors are paying attention: Jupiter Gold and Silver was among their most popular funds in August. It invests in a combination of gold and silver miners and the metals themselves, and has bounced back this summer after a very tough start to the year.
Gold is often described as a safe haven, but it does not always behave like one. It struggled during the Middle East conflict, for example, despite heightened geopolitical uncertainty. Unlike shares or bonds, gold produces no income. Instead, its price is driven by everything from inflation and interest rates to currencies, central bank buying and geopolitical nerves.
Interest rates are particularly important. Because gold pays no income, it tends to look less attractive when investors can earn higher returns elsewhere. That relationship was on display after Federal Reserve chair Kevin Warsh spoke at Jackson Hole in August. His comments prompted traders to increase their bets on an interest rate rise, putting renewed pressure on the gold price.
Tom’s picks
At the start of the year, Fidelity’s investment director Tom Stevenson picked three funds for 2026: Dodge & Cox Worldwide – Global Stock, Fidelity Special Situations, and Lazard Emerging Markets. All three have proved popular and two cropped up on August’s best-sellers list.
• Read: Tom Stevenson’s fund picks for 2026
Fidelity Special Situations hunts for cheap stocks in the UK. Fund manager Alex Wright has years of experience seeking out London-listed companies going through tough times. The portfolio is skewed towards medium- and smaller-sized businesses, but big names like Lloyds and Aviva feature among its top holdings too. It currently leans towards industrial stocks, and the consumer discretionary sector.
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Meanwhile, Lazard Emerging Markets mainly invests in Asia and Latin America and looks for companies that are cheaper than the market but with better fundamental prospects. It aims to outperform the MSCI Emerging Markets Index with less volatility.
Crucially, the fund is wary of some of the Asian mega-caps, which have been extremely volatile of late. It doesn’t currently hold Samsung, for example, and underweights TSMC and SK Hynix. Fund manager James Donald has expressed nervousness about how the artificial intelligence story is unfolding.
Best-selling ISA funds in August
- Fidelity Index World Fund
- Vanguard FTSE Global All Cap Index Fund
- HSBC FTSE All World Index Fund
- Legal & General Global Equity Index Fund
- Lazard Emerging Markets Fund
- Fidelity Multi Asset Allocator Growth Fund
- Artemis Global Income Fund
- Artemis SmartGARP Global Equity Fund
- Legal & General Global 100 Index Trust
- UBS S&P 500 Index Fund
Source: Fidelity International. Net ISA sales 1 August to 31 August 2026 for Personal Investors only.
SIPP – Best-selling funds
- Fidelity Index World Fund
- Legal & General Global Equity Index Fund
- Vanguard FTSE Global All Cap Index Fund
- Legal & General S&P 500 US Equal Weight Index Fund
- Fidelity Multi Asset Allocator Growth Fund
- Royal London Short Term Money Market Fund
- Fidelity Special Situations Fund
- Jupiter Gold and Silver Fund
- Fidelity Cash Fund
- UBS S&P 500 Index Fund
Source: Fidelity International. Net SIPP sales 1 August to 31 August 2026 for Personal Investors only.
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