According to the Investment Management Association, net flows into traditional bank and building society deposits have fallen sharply.

The IMA say that this is in line with investment in funds increasing when interest rates fall, as savers look for capital growth and income unavailable from cash investments.

Jonathan Lipkin, associate director of Pensions and Research at the IMA, said: “We might have expected the intense financial crisis that developed in the autumn of 2008 to undermine investor confidence across all financial products.

“Instead, we saw a marked increase in investment into funds.

“In an environment where mistrust of financial services providers is high, this represents a vote of confidence in the UK fund management industry. From 20% of GDP in the late 1990s, funds now account for assets equivalent to just under 40% of UK GDP.”

The data also highlights that there was a gradual recovery of net inflows into banks and building societies by 2011 after their 2009 low, coupled with a decrease in net retail investment into funds after the first half of 2011.

The first half of 2012 has seen just over £8bn in fund sales.

These lower inflows, with lower net inflows into equity funds in particular, could be attributed in part to increased investor anxiety over the Eurozone situation.