Fund sales hit record high as tax year starts

Fund sales hit record high as tax year starts

UK investors continued to flock to risk assets in April, with net retail fund sales advancing on March's landmark £4bn figure to reach a new record of £4.9bn.

In a continuation of a pattern first witnessed in March, investors once more took a risk-on approach and piled into equity funds. The asset class fared best in terms of net sales, taking in its second highest monthly amount on record of £2bn.

However funds which appeal to more cautious investors also remained popular. Mixed asset products took in £1bn of net sales, while fixed income was third most popular with £225m.

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Investors' sector preferences appeared disparate. The Specialist sector enjoyed the strongest net sales, of £678m, while Targeted Absolute Return took in £607m overall.

The Global equity peer group achieved net retail sales of £376m, followed by Sterling Strategic Bond on £335m and short-term money market funds that attracted £312m.

The least popular sector of the month was the Sterling Corporate Bond cohort, which suffered a net outflow of £277m.

The Investment Association (IA), which provides the figures, attributed the stellar overall sales in part to the new tax year.

Chris Cummings, chief executive at the Investment Association (IA), which provides the figures, said: "With the Isa allowance increasing to £20,000 a year, many investors decided to start the new tax year by investing their savings through authorised funds. This contributed to net retail sales reaching a record high."

The Volatility Managed sector, which launched in April with 87 funds, saw £163m in net retail sales.