Fixed income fund sales saw a boost in May, helping overall sales to continue their healthy recent run despite equities faring less well than in recent months.
Net sales for all funds reached £3.6bn, with positive flows across all asset classes for the third consecutive month.
Equity funds once again led the way, with a net retail inflow of £1bn for the asset class. This, however, was half the level from the previous month, as UK All Companies suffered a net outflow of £532m and UK equity funds overall saw a net outflow of £479m.
In contrast some £931m went into fixed income funds on a net basis, marking a significant increase from April's £225m. Other asset classes viewed as defensive plays also remained popular. Mixed asset portfolios took in £986m, money market products enjoyed inflows of £275m, while property funds saw £56m of inflows.
Sector preferences once again proved disparate. The IA Sterling Strategic Bond sector enjoyed the strongest net sales, of £392m, followed by the IA Global equity fund peer group, which took in £292m.
IA Europe ex UK attracted net inflows of £290m - its highest level since September 2015 - as the continent's economic and market recovery found favour with investors, while IA Japan took in £251m.
The IA Sterling Corporate Bond group saw its fortunes reverse, with the sector enjoying a net inflow of £230m following a net outflow of similar scale in the previous month.
Alastair Wainwright, fund market specialist at the Investment Association, which provides the figures, said: "For the third month in a row, all asset classes have received positive net retail flows. UK retail investors allocated £1bn to equity, with global equity funds once again receiving the majority of net equity flows.
"European equities recorded their largest monthly inflow since September 2015 as financial markets on the continent have improved following political and economic developments."
IA Europe ex UK enjoyed the largest net inflow of the three European sectors, while IA European Smaller Companies took in £42m. The much smaller IA Europe inc UK cohort took in £11m.
Passive vehicles continued to pull in money, with tracker funds enjoying a net retail inflow of £997m. Funds under management for the products stood at £154bn as of the end of May, bringing their share of industry assets to 13.9 per cent compared with 11.4 per cent a year earlier.
The May figures mark the continuation of a pattern first witnessed in March, when funds broke a new record for inflows, only for this to be exceeded the following month. This has marked a move away from the 2016 trend, when few groups brought in meaningful amounts of money.
