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So far this year, AJ Bell DIY investors are a bit more adventurous than in 2025, with less interest in money market funds than was seen last year, and more interest in UK and global funds.
However, two areas that investors seem to be cooling on are funds focused on tech and North America. Some of this movement is likely due to geopolitical nerves as well as speculation of an AI bubble.
The other asset class which has grabbed investors’ attention is precious metals, as gold exceeded $5,250 per ounce in late January.
Outside of multi-asset funds and a global fund, the iShares Physical Gold ETC was the most popular fund among AJ Bell DIY investors in January based on net buys. Despite the gold price pulling back slightly in February, the iShares gold fund remains popular, featuring in the top five most-bought funds so far this month.
Why the move away from money markets?
In the first month of 2026, money markets had approximately one third of the net buys they did in an average month in 2025.
Money market funds aim to generate a return slightly higher than cash, by investing in low risk and short-term debt. Because of this structure, their returns are usually attuned to the Bank of England interest rates, which were cut four times in 2025 from 4.75% to 3.75%.
This drop implies a lower potential return for money market funds this year, which in 2025 averaged 4.3% across the IA sector of standard money market funds.
There are other possible reasons why investor behaviour has shifted. Individuals might be gaining more confidence after feeling nervous about markets in 2025. Following Donald Trump’s announcement of sweeping tariffs in April, the sudden drop across global financial markets spooked investors. Persistent worries of an AI bubble last year also saw many investors seek lower-risk assets.
But now, it seems that the flight to money market funds has slowed massively and other areas are returning to the spotlight.
Nerves towards tech and the US
While some people look ready to dip their toes back into the market, there seems to be less urgency to head back towards the US and funds with large tech holdings.
In the grand scheme, the US still represents the largest portion of the global stock market, and US funds are still some of the most purchased. However, the surge of investors towards these markets has slowed to a trickle compared to interest over the past decade.
A pickup in UK and global investment
Despite the US nerves, investors seemed happy to head back into global funds so far this year. Global tracker funds typically have high exposure to the US, so investors might simply be using this method to maintain a foot in the door Stateside rather than ignoring it completely.
More appealing to AJ Bell’s DIY investors this year has been the home market, with the FTSE 100 having its strongest performance since 2021 last year, producing a total return of 25.8% including dividends. To 11 February this year, it has returned 4.3%.
One attractive feature of the UK market to investors may be its focus on ‘tried and true’ industries instead of tech and AI. Over a quarter of the index is in financials including banks and insurers, followed by consumer staples at 15%. For some investors, this may present a nice middle ground between the lower risk, lower reward money market funds and the higher risk, higher reward tech sector.
However, as preferences shift, it is important to keep in mind the overall goal of investments, rather than exclusively market sentiments. Ensuring investments fit personal needs rather than market movements can create a more stable environment.