Net retail sales of equity funds hit their highest level since April 2000 in July, latest figures from the Investment Association show, with UK equity fund sales at their highest level since 1999.
Sales of equity funds stood at £2bn in July, driven by £943m in net sales of UK equity funds, the highest figure since March 1999.
The trade body’s monthly figures showed net retail fund sales across all asset classes stood at £3bn for the month, up from £2bn a year before and the highest level since April 2014.
The statistics mark a reversal of the subdued sales reported for the first half of 2015, but came ahead of last month’s equity market slump.
UK Equity Income and Europe ex-UK were the two best-selling sectors with net sales of £611m and £367m respectively. But a sign of caution was again evident in the £322m of Targeted Absolute Return fund sales, which put the sector in third place overall.
Sterling Strategic Bond was the worst-selling sector with net outflows of £140m.
IA chief executive Daniel Godfrey said: “Following investor hesitancy seen so far in 2015, confidence returned in July with the highest net retail sales for over a year.
“Although it remains to be seen what impact August’s volatility has on fund sales, retail investors had a strong appetite for equities in July, particularly UK equity funds which saw their highest net sales in over 15 years.”
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