Cash and bond funds fall in popularity in December

Cash and bond funds were less popular with investors on Fidelity’s Personal Investing platform in December amid signs investors may be shifting towards investing rather than hold cash.

A number of cash and short-duration bond funds had been consistent best-sellers on the platform throughout much of 2025.

Fidelity said the shift pointed to investors becoming more comfortable “putting cash to work” as interest rate expectations begin to stabilise.

Emerging market equity and bond funds were also less popular in December, suggesting investors may be turning towards broader strategies.

Jemma Slingo, pensions and investment specialist at Fidelity International, said: “Cash continues to play a central role in investor portfolios, with Fidelity Cash Fund and Royal London Short Term Money Market Fund remaining popular choices in December.

“However, the exit from several long-standing cash funds, such as Legal & General Cash Trust and Aegon High Yield Bond Fund, suggests investors are slowly becoming more adventurous.

“With interest rates falling towards the end of December, the relative attractiveness of holding excess cash may be starting to diminish, encouraging investors to look again at longer-term investment opportunities.”

The best-selling funds, shares and investment trusts on the Fidelity Personal Investing platform in December 2025

 Source: Fidelity International, 7 January 2026