Buoyant sales of equity and mixed asset funds helped funds under management increase 16% to £770bn between 2012 and 2013. Overall, net retail sales soared 43% from £14.3bn in 2012 to £20.4bn in 2013.

Equity fund sales tripled on 2012, with the highest net retail sales since 2000 at £11.4bn.

However, retail sales of fixed income funds plummeted – net outflows of £17m relegated the asset class to fifth place in terms of sales, compared to first in 2012.

IMA chief executive Daniel Godfrey said retail investors were highly active in 2013: “Equity funds took by far the largest share of the net inflows from investors.

“After a number of years with the strongest net sales, fixed income took no new money in 2013. Both mixed asset and property funds saw stronger inflows than in 2012.”