Fixed income and mixed asset funds failed to attract investor interest last month despite the upheaval seen in equity markets, latest Investment Association (IA) figures show.
Monthly statistics from the trade body showed that fixed income funds were hit by some £333m of outflows in August, while equity remained the best-selling asset class with net retail sales of £503m.
While this level of bond fund sales was the lowest since June 2013, mixed asset funds fared worse still on a relative basis: the £55m in net sales for the mixed investment sectors was the lowest total since January 2009.
Net retail fund sales across all asset classes stood at £690m, the lowest since January 2015.
The UK equity income sector remained at top on a sector by sector basis with net retail sales of £520m.
IA chief executive Daniel Godfrey said: “Market volatility may have made investors more cautious in August, reinforcing a tendency for sales to dip over the summer period.
“In terms of asset allocation, investors appear to be sticking with equities - particularly equity income funds - whilst withdrawing money from bonds, perhaps in expectation of an interest rate rise.”
Other developments reflected the market turmoil that occurred last month as the continued falls in Chinese equity markets spread to other regions.
The worst-selling IA sector for the month was the Asia Pacific excluding Japan sector, with net retail outflows of £218m.
Similarly, global equity funds suffered outflows of £125m - the most since November 2011 - and Asian equity funds were hit by £314m in redemptions, the highest figure on record.