The Investment Management Association (IMA) has revealed that 2009 was the highest year on record for fund sales, with £24.8billion in retail sales.
This figure represents a 45 per cent increase on the previous record which was back in 2000, while ISAs also recorded their best year since 2001, with sales totalling £2.8billion.
In addition, funds under management saw their highest year end to date, peaking at £480.8billion – compared to the previous record of £467billion in 2007.
Bonds retained the title of the best selling asset class with net sales totalling £9.87billion – a significant increase compared to 2008 when sales totalled £2.85billion.
Meanwhile equities experienced a resurgence in the second half of 2009 with net sales of £7.73billion, helping it to become the second best selling asset class – a vast improvement on 2008 when it was the worst selling asset, recording a deficit of £1.25billion.
In terms of IMA sector sales, Corporate Bonds remained at the top, as it saw it sales increase from £1.61billion in 2008 to £5.97billion last year.
Welcoming the findings, Richard Saunders, chief executive of the IMA, said 2009 has seen investors adding to their savings at "record rates".
"This trend can be traced back to the autumn of 2008 in the immediate aftermath of the Lehman crash and the ensuing market falls. Investors have prudently chosen wide diversification both across asset classes and geographically – in marked contrast to the previous record year of 2000," he said.
Commenting on a record year for ISAs, Mr Saunders added: "It is good to see people once more investing via ISAs, after five years in which ISAs saw higher levels of withdrawals than investments."
© Fair Investment Company Ltd