Retail sales of equity funds topped £1bn as investors gained confidence over the holiday month, according to the latest Investment Management Association (IMA) data.

This was slightly lower than July but well above the 12 month rolling average.

Total fund sales remained strong at £1.8bn, pushing funds under management up to £732bn in total.

Mixed Investment 20%-60% Shares was once again the best-selling IMA sector, with net retail sales of £273m.

Property funds saw an increase in net retail sales for the seventh consecutive month, reaching £151m in August 2013 – the highest level since June 2010.

Jason Hollands, managing director of Bestinvest said: “Notably sales of property funds have also begun to rise again as income starved investors are tempted by the yields on offer and UK recovery fever has gathered pace. Commercial property has a very strong correlation with the health of the domestic economy, though it is important to be mindful of the potential refinancing risks facing some property deals that were cut pre-credit crisis.

“Overall equities are probably fair value but certain markets, such as the US look expensive, in our view.”

Overall, funds under management for August were £151bn, compared with £124bn a year earlier.