Investment fund net retail sales hit £2.2billion in August this year - the highest level ever recorded for August, according to the Investment Management Association (IMA).
And, as the over 50s ISA allowance increase approaches, the IMA reported positive net sales of ISAs for the sixth consecutive month. ISA sales totalled £151million in August, a huge increase on the minus £299million seen in August 2008.
Commenting, Richard Saunders, chief executive of the IMA said: "Investors continued to add to their holdings in August, as they have been doing all year so far.
"It is particularly encouraging to see investors making use of ISAs again. After five years of withdrawals from ISAs, we have now had six months of net inflows."
The Cautious Managed Sector was top of the buys for ISA sales, while the Corporate Bond Sector remained the most popular investment fund choice overall for the tenth consecutive month.
In fact, bond funds accounted for 34 per cent of total net retail sales of funds in August, although equity funds were not far behind, accounting for 32 per cent of the total, as investors regained confidence in the stock market.
Other sectors to make it into the IMA top five include Absolute Returns – UK, Strategic Bonds, North America and Property.
Meanwhile, share dealing has also seen a rally, as a five fold increase in trading was seen at Interactive Investor in August. Commenting, Rebecca O'Keeffe, head of investment at Interactive Investor said:
"Online trading is now simpler than ever and investors have discovered an increased appetite for share dealing."
ISAs are also proving popular in the share dealing world, Ms O'Keeffe adds: "Investors are also rightly making use of the tax advantages of ISAs. If you are going to trade and invest then doing so within the stocks and shares ISA should be your first port of call."
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