The top funds to buy according to DIY pension investors

Pension investors prefer to fill their portfolios with funds, according to the latest research – but they value diversification instead of ‘one and done’ picks, and are currently erring towards caution.

DIY self-invested personal pension (SIPP) investors are making strategic choices about where and how to invest their pension based on their life stage and macro economic events, according to new research.

Funds represent almost 40% of all holdings among SIPP investors on the Interactive Investor (ii) platform, according to the company’s own data, as of 31 March 2026.

But in order to achieve diversification, there is evidence investors are mixing and matching, with funds accounting for 39.8% of SIPPs, followed by 18.1% for equities, 16.2% for ETFs, and 11.5% for investment trusts.

Kyle Caldwell, funds and investment education editor at ii, said: “When it comes to the world of investing, there are some golden rules that can greatly increase the chances of investment success, with one of the key ones being diversification.

“The benefits of diversification, spreading your investments far and wide, is achieved through investing in a range of different investment types and avoiding being overexposed to one country, sector, investment style, or theme.”

Top pension investments for DIY investors

Pension savers who haven’t yet started to access their pot are unsurprisingly showing more appetite for risk as they look to grow their money over a longer timeframe, favouring global equity index funds. However, those in drawdown are focusing on income generation and capital preservation.

At the moment, very low risk money market funds are proving popular choices, both for pre-retirement and post-retirement SIPP portfolios.

Source: Interactive Investor, as of 31 March 2026

Caldwell said: “Money market funds own a diversified basket of safe bonds due to mature soon, normally within just a couple of months, meaning investors can earn an income on their cash with minimal risk.

“The fund yields, which reflect the amount of income generated from the underlying bonds held, are typically in line with the Bank of England base rate. Therefore, as things stand today, investors can procure yields of around 3.75%, which at the moment are proving inflation-beating income.”

Investors often use money market funds to park cash balances for a short period while deciding where to invest, or to guard against periods of stock market volatility. Given the Middle East conflict is ongoing some investors are more inclined to adopt a more cautious stance.

However, said Caldwell, it is important to bear in mind that balance is key. “While money market funds, given their current yields, serve as useful defenders in a portfolio, having too much in cash or cash-like alternatives for long periods will hamper long-term growth.”

Another sign of caution is shown through Jupiter Gold & Silver and Ninety One Global Gold appearing in ii’s top 10 table for SIPP drawdown customers.

Caldwell said: “In particular, gold has shown its worth as a safe haven asset that behaves differently to equity markets. However, while it ultimately proved to be short-lived, the volatility that played out for silver and gold in late January serves as a reminder that the prices of both precious metals can fluctuate rapidly.”

ii’s most-held SIPP fund choices for both accumulation and drawdown show plenty of appetite for growth assets – with global funds proving most popular.

“Global funds, both those actively managed and those that track the global market return, are potential core holdings that investors can tuck away with confidence due to the diversification on offer,” said Caldwell.

“In addition, due to their flexibility, global funds have the ability to provide greater levels of protection versus equity funds focused on a particular region or part of the market, such as smaller company shares.”