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While Lipper's latest FundFlash report described the €1.7bn (£1.5bn) in redemptions for the month as "modest", it said the outflow had "tarnished" hopes that "the small shoots of recovery might soon emerge".

It said the data clearly showed investors' preference for safe-haven investments, with money-market funds as the primary driver of net inflows.

These gains were complemented, it added, by a smaller move into commodity funds (€1bn).

Lipper said equity funds had "inevitably" fallen into redemption, but added that the €2.8bn in outflows was relatively slight compared with the steep falls that occurred during some months last year, "when stock market losses were broadly equivalent".

It said: "Investors seem to have concluded that the market bottom is close, but they lack the confidence to take any risk."

In terms of fixed income, Lipper said cross-border groups were in the driving seat as far as inflows were concerned and that the UK market was continuing its "momentum".

"With interest rates hitting rock bottom, the search for yield is on, giving cross-border groups an opportunity to rebuild market share," it said.

"Fund choice at a domestic level is sparse and leaves an open door for specialists."

The group with the strongest net flows in February was M&G, thanks largely to support for their UK bond and equity funds.

M&G also posted the strongest equity net inflows over the period, Lipper said.