Market volatility sees fund sales fall in August
Fund sales dropped in August to £690m, the lowest level since January 2015, and down from £714m in August 2014, according to data from the Investment Association.
This shift followed an exceptionally strong July, which saw investors plough £3bn into funds.
In terms of asset allocation, equities were the best-selling asset class for the fourth consecutive month with net retail sales of £503m.
UK equity income funds proved particularly popular, taking in £520m of private investor money.
Meanwhile, investors withdrew £333m from fixed income funds – the largest outflows since June 2013 – “perhaps in expectation of an interest rate raise,” said Daniel Godfrey, chief executive of The Investment Association.
Mixed asset funds had their lowest sales at £55m since January 2009 – compared to £449m in July.