- Many investors rely on fund popularity as an indicator of success. However, this analysis challenge this belief, revealing that popular funds do not always deliver strong returns.
- There is a common misconception that widely purchased funds must be strong performers, but our analysis shows that several top-selling funds on major UK platforms consistently underperform their sector averages.
- Hargreaves Lansdown and BestInvest’s most popular funds include in-house options with weak performance, highlighting how platform influence can shape investor decisions.
This article analyses the 10 top-selling funds on the UK’s leading self investment platforms, Hargreaves Lansdown, BestInvest, and Interactive Investor. While some of these funds have delivered strong, consistent returns, others have struggled to keep pace with their sector peers, raising questions about whether popularity is a reliable indicator of investment quality.
We examine why many investors gravitate towards well-known funds, the risks of following crowd-driven trends, and the importance of objective performance analysis. By understanding these factors, investors can make more informed decisions and avoid common pitfalls associated with popularity based fund selection.
Fund Performance Across UK Investment Platforms
The following analysis looks at the 10 current most popular funds on Hargreaves Lansdown, BestInvest, and Interactive Investor, highlighting their performance, sector ranking and overall performance rating.
10 Most Popular Funds on Hargreaves Lansdown
Hargreaves Lansdown is the UK’s largest investment platform, with over £155 billion invested by more than 1.9 million clients. As the leading fund supermarket, it holds significant influence among investors, particularly those managing their own portfolios.
A key driver of investor choices is the platform’s well-known ‘Wealth 50’ list of favourite funds. However, this list has faced scrutiny over the selection process, raising questions about both the funds included and those left out. Beyond this curated selection, the funds most frequently purchased on the platform also play a major role in shaping investment trends among UK investors.
This report focuses on the 10 most popular funds sold via Hargreaves Lansdown. The table below evaluates each fund’s performance against sector peers over the past 1, 3, and 5 years.
As identified in the above table, Four of the most purchased funds on Hargreaves Lansdown are its own in-house funds, highlighting the platform’s strong influence over investor perception and decision-making. While these funds may prove to be strong performers in the future, they currently lack the long-term track record needed to support data-driven investment decisions. The only available long-term data comes from Hargreaves Lansdown’s older fund range, where 13 funds have at least five years of performance history. However, 11 of these have delivered consistently poor returns, earning just a 1 or 2-star Yodelar performance rating.
10 Most Popular Funds on BestInvest
BestInvest is a well-established UK investment platform that provides a range of services, including ISAs, SIPPs, and a broad selection of investment funds. Founded in 1986, it is now part of Evelyn Partners, one of the UK’s largest wealth management firms. BestInvest is known for catering to self-directed investors while also offering investment management services for those seeking professional guidance.
The platform has gained recognition for its detailed fund research and tools designed to help investors make informed choices. One of its most well-known reports, the "Spot the Dog" list, highlights consistently underperforming funds, reinforcing its commitment to transparency. However, when it comes to fund selection, many investors still gravitate toward the platform’s most purchased funds, influenced by market trends, branding, and past performance.
Similar to Hargreaves Lansdown’s 10 most popular funds, BestInvest’s best-selling funds also include three from its own Evelyn Partners fund range. However, as shown in the performance table, all three have underperformed compared to their sector peers. In fact, these funds rank among the weakest performers on BestInvest’s most popular funds list, despite the availability of significantly stronger alternatives. This further reinforces the importance of prioritising performance analysis over brand recognition or platform influence when selecting funds.
10 Most Popular Funds on Interactive Investor
Interactive Investor (ii) is one of the UK’s largest direct-to-consumer investment platforms, managing over £70 billion in assets for more than 430,000 clients. Unlike percentage-based fee structures used by many competitors, ii operates a flat-fee model, which appeals to cost-conscious investors looking to keep charges predictable. The platform offers a wide range of investment options, including ISAs, SIPPs, and general trading accounts, making it a popular choice for both self-directed and long-term investors.
A key feature of Interactive Investor is its ‘Super 60’ and ‘ACE 40’ investment lists, designed to highlight funds, investment trusts, and ETFs that meet its selection criteria. These curated lists play an influential role in investor decision-making, often shaping fund popularity. However, as with any selection process, inclusion in these lists does not always guarantee superior performance.
This report examines the 10 most popular funds on Interactive Investor, assessing their returns against sector peers over the past 1, 3, and 5 years. While some funds have demonstrated consistent strength, others serve as a reminder that popularity does not always equate to strong investment performance.
Unlike Hargreaves Lansdown and BestInvest, Interactive Investor does not offer its own in-house range of funds. As a result, the platform’s 10 most popular funds come exclusively from external investment brands. Without the presence of affiliated funds, the selections on Interactive Investor show a notably stronger performance history compared to the best-selling funds on Hargreaves Lansdown or BestInvest.
As highlighted in the table, all 10 of Interactive Investor’s most popular funds have consistently outperformed their sector average across each of the time periods analysed. This highlights the importance of looking beyond brand recognition when selecting funds.
Long-Term Success Comes from Quality, Not Popularity
Many investors mistake fund popularity for quality, assuming widely purchased funds must be strong performers. However, marketing, media exposure, and brand recognition often drive inflows, even when long-term returns are weak.
A more effective strategy focuses on historical performance and fund manager consistency. Top-quartile funds within their sector demonstrate strong management and reliable returns, while persistently underperforming funds offer little justification for inclusion.
Investing based on popularity rather than objective performance data exposes investors to unnecessary risk. A fund’s reputation does not equate to financial strength—thorough research and performance analysis are essential for selecting funds that deliver sustainable growth.
Key Factors in Evaluating Fund Performance
There are 3 important fund performance considerations:
Comparative Benchmarking
A fund’s performance should be evaluated relative to its sector peers. Comparing returns over multiple timeframes helps identify funds that consistently outperform and highlights the strength of their management teams. Sector benchmarking provides essential context, distinguishing between short-term fluctuations and long-term investment quality.
Managerial Expertise
Historical returns offer insight into the skill of a fund’s management team. Funds that repeatedly rank among the top performers within their sector typically demonstrate strong leadership and sound investment strategies. In contrast, persistently underperforming funds suggest weaker management capabilities and a failure to generate competitive returns. While past performance does not guarantee future success, it remains a key indicator of managerial effectiveness.
Market Cycle Resilience
Funds operate across varying economic and political conditions. The ability of a fund and its managers to navigate different market cycles is a strong indicator of long-term stability. Funds that perform well through different phases—booms, downturns, and recoveries—demonstrate adaptability and robust investment strategies, making them more reliable choices for long-term investors.
Find Out How Efficient Your Fund Choices Have Been
Inefficient investing can significantly limit long-term growth, yet most investors remain unaware of the weaknesses in their portfolios. Yodelar’s extensive analysis of thousands of UK investment portfolios has found that over 90% contain inefficiencies that hinder returns, causing many investors to miss out on stronger growth opportunities.
Our portfolio analysis service provides a clear comparison against a similar risk-profile portfolio built with top-performing funds. With measurable ratings and full transparency, investors gain valuable insight into the quality of their fund choices and their portfolio’s overall competitiveness - helping them make informed decisions for a more efficient investment strategy.
Quality Advice Leads To Smarter Investing
In contrast to the unpredictable nature of self-managed investing, professional advice provides a structured and strategic approach that can lead to stronger long-term outcomes. Research from the Centre for Economic Policy Research (CEPR) underscores the value of working with financial advisers, who provide tangible benefits such as higher returns, improved diversification, and reduced risks.
Our analysis of the most popular funds on Hargreaves Lansdown and BestInvest highlights a recurring issue - many investors gravitate toward funds that lack a strong performance track record. A large number of the most widely held funds on these platforms have consistently underperformed their sector averages. Despite this, investors continue to allocate capital to these funds, often due to brand trust or familiarity rather than objective performance analysis.
Quality financial advisers bring expertise, experience, and emotional discipline that self-managed investors often lack. By tailoring portfolios to individual goals and risk tolerance, advisers ensure that investments remain aligned with long-term objectives. More importantly, they help clients navigate periods of market volatility with a clear strategy, preventing rash decisions that could derail financial progress.
While self-directed investing may seem empowering, the risks often outweigh the rewards. Partnering with an experienced adviser mitigates these risks and helps investors stay on track with a structured, disciplined investment approach. Access to informed guidance, rather than relying on instinct or market trends, is a key factor in building resilient and successful portfolios.
The Value of Advisers Who Understand Fund Quality
An often-overlooked aspect of quality financial advice is the adviser’s ability to assess fund performance effectively. To construct an efficient, high-performing portfolio, an adviser must have a deep understanding of how to identify funds that consistently outperform their peers. This requires not only technical expertise but also a commitment to ongoing analysis and objective fund selection.
Our analysis of the 10 most popular funds across the three major investment platforms has shown a clear divide. While Interactive Investor’s most widely held funds have demonstrated stronger returns, many of the top funds on Hargreaves Lansdown and BestInvest have consistently lagged behind their sector averages. This reinforces the need for thorough fund selection - simply following what others are investing in can lead to holding underperforming assets.
This is one of the reasons why more self managed investors should consider professional investment advice. The most reputable advisers distinguish themselves through transparency in fund evaluation. By openly sharing their selection process and performance criteria, they provide clients with a clear understanding of how investments are chosen and why they are included in a portfolio.
In an increasingly competitive investment landscape, choosing an adviser who prioritises rigorous fund evaluation can make a significant difference. By focusing on objective performance data rather than market sentiment, investors can build stronger, more resilient portfolios that consistently deliver results.
Book A No Obligation Call With A Yodelar Investment Adviser
Conclusion
Investing based on popularity is a flawed strategy. While some widely purchased funds offer stability, others are overvalued, underperforming, or vulnerable to market shifts. Relying on name recognition without thorough analysis often leads to disappointing returns.
Our review of the top-selling funds on Hargreaves Lansdown, BestInvest, and Interactive Investor confirms that popularity does not guarantee strong performance. Many frequently bought funds have lagged behind sector averages, highlighting the risks of crowd-driven investing.
The best investments align with individual goals and risk tolerance, not just market trends. Careful research, diversification, and objective fund selection are key to sustainable growth. For these reasons, more investors should consider professional investment advice. An experienced independent adviser can provide strategic fund selection, risk management, and long-term planning to help build a stronger, more resilient portfolio that avoids the pitfalls of popularity-driven investing.
