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The most bought funds on UK self-directed platforms in 2025 include a mix of global equity, multi-asset and income strategies, but their results vary widely.
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Some popular funds such as Artemis Global Income, Ranmore Global Equity and Artemis UK Select have consistently outperformed their sector averages over 1, 3 and 5 years.
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Others, including Vanguard LifeStrategy 40% Equity, Fundsmith Equity and Evelyn’s model portfolios, have significantly lagged peers, raising questions about their continued popularity.
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Popularity often masks hidden risks such as duplication of holdings, which reduces diversification and increases costs - an issue many self-directed investors overlook.
Self-directed investing in the UK has grown rapidly over the past decade. Platforms such as Hargreaves Lansdown, Fidelity, BestInvest and Interactive Investor have made it easy for investors to buy funds, track performance, and manage their portfolios independently. This accessibility has helped more people invest, but popularity does not always equal effectiveness.
Many of the most bought funds in 2025 have been selected because of their visibility on platforms, strong brand recognition, or past performance. While these factors make a fund attractive to investors, they are not a guarantee of consistent results. In fact, our analysis shows that some of the most heavily purchased funds this year have outperformed sector averages by a wide margin, while others have lagged significantly behind.
This review looks at the most bought funds of 2025 across the UK’s leading self-directed platforms. We analysed 41 funds that feature on these platforms’ most bought lists and compared their performance over 6 months, 1 year, 3 years and 5 years against sector averages. From this, we highlight five popular funds that have delivered the strongest results, five that have fallen furthest behind, and explore structural risks such as duplication that many self-directed investors may overlook.
Popular Funds: A Story of Contrasts
Across the most bought funds list, there is a clear divide. Some popular funds have delivered strong results across multiple timeframes, showing an ability to outperform sector averages consistently. Others, however, have disappointed by lagging across short and long-term horizons despite their popularity.
This contrast highlights a fundamental truth: popularity is not a measure of quality. While investors often take comfort in following the crowd, choosing well-known brands, or relying on platform best-buy lists, the data shows that outcomes vary widely. For every fund that has rewarded investors, there are others that have consistently fallen short of what could have been achieved elsewhere.
5 Top Performing Funds Popular Funds
The 5 funds below are among the most popular funds on Hargreaves Lansdown, BestInvest, Interactive Investor and Fidelity with the best performance history comparative to their sector peers over the periods analysed.
Vanguard LifeStrategy 80% Equity Fund
The Vanguard LifeStrategy 80% Equity fund is designed to provide long-term capital growth through a diversified global allocation. Around 80% of assets are invested in global equities with the remainder in bonds, offering investors exposure to global growth while maintaining some risk control.
This fund has proven one of the strongest performers in the LifeStrategy range. Over the past year, it returned 1.20% compared with the sector average of 0.85%. Over three years, it delivered 7.06% compared with 3.63%, and over five years it achieved 52.00% compared with 36.55%.
Performance has been supported by broad exposure to developed markets, particularly the US, where large-cap technology stocks have contributed significantly in recent years. Its passive, rules-based strategy ensures consistency, and the global allocation has enabled the fund to capture strong equity market growth with less volatility than a 100% equity approach.
Artemis Global Income Fund
The Artemis Global Income fund aims to deliver income and growth by investing in quality global companies with strong cash flows and reliable dividends. Managed with an active stock-picking approach, the portfolio targets businesses that combine sustainable income with long-term capital appreciation.
This fund has consistently been one of the best in its sector. Over one year, it returned 3.61% compared with 0.57% for the sector average. Over three years, it delivered 13.95% against 3.20%, and over five years it gained 157.44%, more than double the sector average of 69.63%.
Recent performance has been driven by strong positions in global dividend payers across sectors such as healthcare, consumer staples, and industrials. The managers’ focus on quality and valuation has helped the fund avoid some of the volatility that has affected more growth-orientated peers, delivering resilience and long-term compounding.
Ranmore Global Equity Fund
Ranmore Global Equity invests predominantly in global equities, with a concentrated portfolio of companies chosen for value and long-term growth potential. The strategy is fundamentally driven, with managers prepared to diverge from benchmarks to focus on high-conviction holdings.
Its track record demonstrates consistent outperformance. Over one year, the fund returned 2.41% versus 0.73% for the sector average. Over three years, it gained 9.14% compared with 3.71%, and over five years it returned 159.76%, significantly above the sector average of 56.57%.
Performance has been supported by strong stock selection in global financials, technology, and industrials. Ranmore’s willingness to invest with conviction has allowed it to outperform more benchmark-focused funds, and its long-term results highlight the effectiveness of this approach.
Fidelity Special Values Trust
Fidelity Special Values is an investment trust focused on UK equities. The managers adopt a contrarian, value-oriented approach, targeting companies that are undervalued but with the potential for recovery and long-term growth.
Over one year, the trust returned 1.46% compared with a sector average of 2%. Its three-year return of -0.12% lags the sector’s 10.65%, but over five years it has delivered 8.03% compared with 70.91% for the sector. While shorter-term performance has been disappointing, the long-term strategy remains rooted in value opportunities that can deliver over a market cycle.
The UK equity market has been a difficult environment in recent years, with growth stocks and global-facing companies dominating returns. This has weighed on value-focused funds like Fidelity Special Values. However, the trust has benefited from selective holdings in resilient financials and industrials, and remains well positioned if market sentiment shifts back toward value.
Artemis UK Select Fund
Artemis UK Select is an actively managed fund that invests across the UK market with a high-conviction approach. The managers seek to identify companies with attractive valuations and strong growth prospects, balancing exposure across sectors and capitalisations.
Over the past year, the fund returned 1.11% compared with the sector average of 0.68%. Over three years, it gained 7.83% versus 6.62%, and over five years it delivered 76.75% compared with 56.58% for the sector.
Recent performance has been supported by strong positions in mid-cap companies, which have rebounded from periods of weakness. Exposure to financials, industrials and selective consumer stocks has also aided returns. Its consistent ability to stay ahead of peers has compounded over time, helping investors achieve superior long-term growth.
5 Worst Performing Funds Popular Funds
The 5 funds below are among the most popular funds on Hargreaves Lansdown, BestInvest, Interactive Investor and Fidelity with the worst performance history comparative to their sector peers over the periods analysed.
Vanguard LifeStrategy 40% Equity Fund
This fund invests around 40% of its assets in equities and the remainder in bonds, aiming to provide balanced growth with lower volatility than higher equity allocations. It is popular with more cautious investors seeking steady returns.
Performance, however, has been disappointing. Over one year, it returned just 0.74% compared with the sector average of 3.17%. Over three years, it delivered 4.07% versus 24.43%, and over five years it achieved 15.38% compared with 24.43%.
The fund’s defensive positioning has limited growth during equity market rallies, and its heavy reliance on fixed income has been a headwind during periods of rising interest rates. While volatility has been reduced, the opportunity cost has been significant relative to peers.
Evelyn Growth Portfolio Fund
The Evelyn Growth Portfolio is a mixed-asset strategy that blends equities and bonds to deliver long-term growth. Despite its positioning, performance has consistently trailed peers.
Over the past year, it lost 0.54% compared with a sector average of 2.88%. Over three years, it gained just 0.44% against 2.88%, and over five years it returned only 1.88% compared with 35.49% for the sector.
Weak asset allocation decisions and a lack of exposure to stronger-performing global equities have constrained results. While marketed as a growth solution, the portfolio’s structure has failed to capture the market gains achieved elsewhere in its sector.
Evelyn Adventurous Portfolio
The Adventurous Portfolio is designed for higher-risk investors, with a greater allocation to equities and growth assets. Yet its results have fallen short of expectations.
Over one year, it fell by 0.66% compared with a sector average of 2.88%. Over three years, it returned 0.44% versus 2.88%, and over five years it achieved just 2.53% against 35.49% for the sector.
Despite its adventurous positioning, the fund has not delivered the stronger returns investors would expect for taking on more risk. Lack of exposure to the strongest growth regions and underperforming asset choices have weighed heavily on results.
Evelyn Maximum Growth Portfolio
Marketed as a maximum growth solution, this fund invests heavily in equities with the aim of maximising long-term returns. However, its results have been among the weakest of the most popular funds.
Over the past year, it fell by 2.16% compared with a sector average of 3.05%. Over three years, it gained only 0.34% versus 3.05%, and over five years it returned 5.16% compared with 57.6% for the sector.
The disparity highlights shortcomings in asset allocation and stock selection, with performance consistently trailing sector averages by a wide margin. Despite its growth label, the fund has not delivered the outcomes expected of a high-equity portfolio.
Fundsmith Equity Fund
Fundsmith Equity is one of the UK’s largest and most well-known funds, investing in a concentrated portfolio of global equities with a focus on quality companies that can deliver long-term compounding. Despite its reputation, recent results have been disappointing.
Over one year, it returned just 0.32% compared with a sector average of 3.71%. Over three years, it delivered 2.89% versus 56.57%, and over five years it returned 2.89% compared with 56.57%.
The fund’s emphasis on quality growth stocks was a strength in the previous decade but has proven a weakness in recent years as market leadership shifted. Heavy exposure to US consumer staples and technology names has weighed on results, leaving it well behind peers despite its popularity.
Beyond Performance: What Self-Investors Need to Consider
Looking only at past performance tells part of the story. While some popular funds have outperformed and others have lagged, the bigger risk often lies in how investors combine these funds within their portfolios. A common issue is duplication of holdings.
Many self-managed investors assume that holding a range of funds automatically provides diversification. In practice, however, different funds frequently invest in the same large global companies. A portfolio may include a global equity fund, an index tracker, and even a regional strategy, yet all could have Apple, Microsoft and Amazon among their largest positions.
This duplication means investors may end up paying multiple fund charges for exposure to the same companies, while also reducing the true diversification of their portfolio. In downturns, overlapping positions can amplify losses rather than spread risk, leaving portfolios more concentrated than they appear on the surface.
The Double Penalty of Duplication
Duplication penalises investors in two ways. First, by increasing costs - multiple funds charging fees for managing the same assets. Second, by reducing diversification - creating concentrated portfolios that are more vulnerable to volatility.
This is a structural flaw of self-managed investing, where portfolios are often built around popular funds without assessing how the underlying holdings overlap. On the surface, a portfolio may appear well diversified across 8–10 funds. In reality, it can be highly concentrated in a handful of global large-cap companies.
The Hidden Advantage of Advice-Led Investing
Professional oversight addresses these risks. At MKC Invest, portfolios are monitored not just at the fund level but also across the underlying holdings. This ensures duplication is avoided, charges remain efficient, and genuine diversification is maintained.
With discretionary permissions, MKC Wealth can act quickly when a fund underperforms or becomes duplicative. Changes are made in real time rather than delayed by the need for client sign-off, ensuring portfolios adapt to markets as conditions evolve. This proactive approach provides a structural advantage over DIY portfolios, which often remain static until investors take notice of underperformance - sometimes years too late.
Related Article: The Value of Advice: Research Shows Advised Clients Build More Wealth
Conclusion
The most bought funds of 2025 highlight a stark reality: popularity is no guarantee of performance. While some popular funds have rewarded investors, many have lagged behind their peers. Beyond this, hidden inefficiencies such as duplication can undermine even seemingly well-diversified portfolios.
Self-directed investors who rely on popularity or platform best-buy lists risk committing to underperforming strategies, paying unnecessarily high charges, and holding portfolios that are less diverse than they appear.
Advice-led investing provides the oversight to address these issues. Through disciplined monitoring, timely rebalancing, and a focus on efficiency, MKC Invest builds portfolios designed for consistency and long-term growth.
For investors managing their own portfolios, the findings in this review should serve as a reminder to look deeper. If you want to know whether your portfolio is truly working efficiently, you can book a no-obligation call with an MKC Wealth adviser. They will analyse your holdings in detail, identify inefficiencies, and show how smarter oversight could help you achieve stronger outcomes.
