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The IMA's newly created Absolute Returns sector has seen net retail inflows of nearly £160m in the first month of its existence.

The £1.8bn sector includes top-selling funds such as BlackRock's £714m UK Absolute Alpha fund, and the Morley Diversified Strategy fund.

However, the absolute returns peer group was not April's top dog, as the UK Other Bond sector saw net inflows of £456m.

The UK All Companies sector was the biggest loser, with net outflows of £182m, although the peer group accounted for the most gross sales, seeing 13 per cent of all UK funds sales.

Europe ex-UK was the next up in the list, seeing net outflows of £119m. UK Equity Income was similarly unpopular, with £72m being withdrawn over the month.

Inflows into emerging markets funds appeared to have waned over the month, with Global Emerging Markets funds taking just £37m in net sales.

The IMA welcomed the new data, which saw a belated boost to overall fund sales.

Richard Saunders, chief executive of the trade body, said: "After two extremely modest quarters, net retail sales bounced back in April to £1.5bn – the best performance for a year."

In particular, he heralded property funds as seeing a return to form, with net inflows of £70m accounting for a large portion of the Specialist sector's £337m net intake.

But Colin Jackson, director of Essex-based IFA Baronworth Investment Services, said he was surprised investors had already returned to the asset class.

"I am amazed at that – unless people are thinking, and quite rightly, that they should buy at the bottom – which is where it may well be. Maybe we have a lot of savvy investors out there," he said.

Mr Jackson also questioned the popularity of the Absolute Returns sector. "The name suggests some sort of guarantee, but they are not guaranteed products. I wonder whether in this current climate, people see the words absolute returns and think they have a higher level of protection than they actually have.

"There is an element of panic here – if you read the press, it is all doom and gloom, so people are thinking they should be getting out of it, and going into absolute returns, thinking they are safe havens, which they are not."

Rather than turn to this sector, Mr Jackson said a number of his clients were investing their money in structured or guaranteed products, or cash.

"They are all extremely nervous, and that will continue for the foreseeable future," he said.