The best selling sector for the month was the IMA £ Corporate Bond which, with £303m in sales, reported its strongest month since August 2010.
Overall retail sales were equally strong, as the £998m recorded for the month represents the highest since August 2011. This figure is still below the monthly average of £1.6 billion for the previous 12 months.
Richard Saunders, chief executive of the IMA, says: “January saw an uptick in fund sales, with investors adding almost £1 billion to their portfolios.
“Fixed income funds saw their highest sales since October 2010, with strategic and corporate bond funds particularly popular.”
Saunders says equity funds reversed four consecutive months of outflows to report £63m in positive sales in January.
Investors were particularly bullish on Asia Pacific excluding Japan, making it the fifth highest selling sector. This is the first time the sector has been a top five seller in two years and moves up from 29th place last month.
Sales of ISAs were “disappointing” adds Saunders as ISAs reported net outflows for the fourth month in a row, losing £117m.
Funds under management in January reached £589.5 billion, increasing by 2% on January 2011.