Investment funds have proved popular with investors at the start of the year with the best January sales on record, according to the Investment Management Association (IMA).
Despite net sales of investment funds falling from £2.2billion in December last year to £1.8billion this January, it has been the most successful January ever with sales 55 per cent higher than in same period last year.
Pleased by the figures, Richard Saunders, chief executive of the IMA said: "We've seen a good start to the year with net retail sales of £1.8 billion - the highest sales for any January. As in recent years, January sales have come in slightly below those of December."
In addition, there has been a significant increase in fund ISA sales in January with sales topping £174miilion compared to the sales figures of £2million for the same period in 2009.
In terms of asset classes, equities have led the way, accounting for 30 per cent of net sales, with bonds – which led sales during much of 2009 – accounting for 17 per cent.
Of the equity sector, Global Growth is the top selling sector with sales of £229million, while Specialist and Asia Pacific excluding Japan are in second and third place respectively, as Mr Saunders claims that equity investors are "becoming more adventurous".
Meanwhile, the property sector has seen a marked turnaround in the past 12 months, rising 24 places to become the highest selling IMA sector in January with sales of £373million, while the Strategic Bond and Global Bond sectors have also proved popular with investors in the first month of 2010.
Commenting, Mr Saunders said: "Property was the most popular IMA Sector in January, as it had been in the last quarter of 2009. By contrast, the least popular IMA Sector in January was Sterling Corporate Bond, which had topped the sales charts for the first eight months of last year."
© Fair Investment Company Ltd