Fund market sees £1.6bn invested in July

UK savers invested £1.6bn into retail funds in July, according to latest figures published by the Investment Association.

Bond funds had net retail sales of £1.8bn during the same month, while the global bond sector was the best-selling sector with £693m invested.

IA also highlighted that equity funds experienced outflows of £609m, which was driven by UK equities.

Meanwhile responsible investment funds had “another month of strong net retail sales” with £966m invested in July.

And tracker funds had net retail inflows of £1.4bn in the period.

FUNDS UNDER MANAGEMENT AND NET SALES

Source: Investment Association 

Investment Association chief executive Chris Cummings says: “The fund market maintained a steady course in July as savers invested £1.6bn. Bond funds took pole position, with net retail sales close to £2bn for the third consecutive month, as investors sought out new sources of income.

“Responsible investment funds have sustained their strong appeal during the coronavirus pandemic, with savers investing almost £1bn for the third time since April.”

The five best-selling Investment Association sectors for July 2020 were: Global bonds with net retail sales of £693m; corporate bond with net retail sales of £691m; global with net retail sales of £640m; mixed investment 40-85 per cent shares with net retail sales of £515m and volatility managed with net retail sales of £222m.

The worst-selling sector in July 2020 according to Investment Association was specialist with an outflow of £476m.