Retail investors are starting to pile back into equity funds at the end of a record quarter for sales, according to the latest IMA monthly figures.The retail sales total for June of £2.5bn is almost equally split between bonds and equity funds with £990m going into equity funds and £897m into bond funds.
However, Corporate Bonds is still the most popular UK domiciled net retail sector with an inflow of £533.3m. It is the eight consecutive month that corporate bonds have topped the chart. Investors continue to pull out of money market funds with the sector recording the highest net outflow in June of £13.4m.
IMA chief executive Richard Saunders, comments: "Investors have been coming back to the market in recent months and June saw a continuation of this trend. "Retail investors have begun over the last two months to put money into equity funds, particularly international equities, as well as bond funds. As a result net retail sales in the second quarter were the highest on record and net ISA sales the highest for six years."
However, on a monthly basis ISAs' popularity fell with a net inflow of £246.9m, down from the previous month's total of £310.7m. The most popular ISA sector was Cautious Managed, which accounted for 22% of gross ISA sales.
Funds under management also dropped slightly in June to £389.3bn from May’s total of £391.6bn. Demand for overseas funds rose over the month with net retail sales reaching £44.2m compared to outflows of £183.2m during the same month last year.
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