Investors flocked to UK equity funds in July with sales reaching their highest level for 16 years, according to the latest figures from the Investment Association.
The best-selling region in July, UK equity funds saw net retail sales of £943m, almost double the level in June. At the previous highest level in March 1999 sales reached £1.2bn.
Meanwhile money poured out of Asian equity funds, the worst-selling region in July with net retail outflows of £151m.
However, equity fund across all geographies reached a 15-year peak at £2bn, seeing the highest level since April 2000, with equity the best-selling asset class in July.
Total net retail fund sales were also at the highest point since April 2014 at £3bn, up from £2bn year on year.
At a sector level, UK equity income ranked highest for sales in July with net retail sales of £611m, while the worst-selling sector was the sterling strategic bond sector with a net retail outflows of £140m.
Daniel Godfrey, chief executive of the Investment Association, says: “Following investor hesitancy seen so far in 2015, confidence returned in July with the highest net retail sales for over a year.
“Although it remains to be seen what impact August’s volatility has on fund sales, retail investors had a strong appetite for equities in July, particularly UK equity funds which saw their highest net sales in over fifteen years.”