Gold and emerging markets funds saw the best returns during the first month of the year, while gilts suffered negative performance.
The best Investment Association sectors by performance during January were China, Asia Pacific ex Japan, Global Emerging Markets and Asia Pacific inc Japan, which all returned in excess of 4%, according to Wealth Club.
Meanwhile, the worst sector was UK Gilts, which lost 2.3%, while Global Bonds, UK index-linked Gilts and Sterling Corporate Bond sectors were also featured.
Looking at funds, gold funds were once again a winner for investors, as investors were once again spooked by global uncertainty following the implementation of a number of protectionist policies by US President Donald Trump in his first couple of weeks in office.
MFM Junior Gold, SF Peterhouse Smaller Companies Gold and WAY Charteris Gold & Precious Metals all feature in the top five best performing funds. The remaining two funds in the top five were Neptune Latin America, which returned 9.8%, and Baillie Gifford Long Term Global Growth, up 7.8%.
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At the bottom end of the scale, four of the five worst perfomers were bond funds, including Aberdeen Sterling Long Dated Govt Bond, which fell 4%, and Henderson Inst Long Dated Gilt, down 3.9%. The only non-bond fund featured in this list was Investec Global Energy, which also fell 4%.
Ben Yearsley (pictured), investment director at Wealth Club, said: "After the roaring equity markets of the second half of 2016, markets understandably are pausing for a breather.
"The FTSE 100 is still dominated by currency movements, and without last year's sharp depreciation it would be looking expensive. Sterling performed OK in January, up against the US dollar and down marginally against the euro and yen. We are just coming in to the results season and it will be interesting to see sterling's impact on company profits.
"Last year was the year of the index hugger, it was very difficult to beat indices; I think this year will be more discerning and stockpickers will come to the fore. Bonds and property continue to look unappealing in the face of rising US rates. As well as filling four of the bottom five funds, fixed interest filled four of the bottom five sectors."
