Experienced Investor
Market volatility sees fund sales fall in August
Investment fund sales tumbled last month as market turbulence put people off investing in the stock market.
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.
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