9th January 2014
UK retail investors ploughed more than £1.5bn into investment funds during November in a bid to get a better return on their cash according to new figures writes Philip Scott.
More and more savers are shunning the paltry savings rates on offer in banks and building societies and turning to investment funds in order to get their cash working for them.
According to the latest round-up from the UK’s fund management trade body, the Investment Management Association, (IMA) in November investors piled a massive £1.6bn into equity funds.
As a result small investors collectively now have a massive £763bn in investment funds, a 16% rise on 12 months ago.
During November, equity based funds were the top investment pick for the eight consecutive month with sales of £935m.
Mixed asset funds, which hold a mixture of shares, bonds, property and other investments were the second best-selling asset class with net retail sales of £358m while commercial property funds also remained one of the top picks with sales of £212m in November 2013.
The worst selling IMA sector for November 2013 was sterling Corporate Bonds where investors offloaded nearly £150m.
Daniel Godfrey, IMA chief executive says: “We saw a continuation of strong investment fund sales in November last year – the top five best-selling IMA sectors indicate that investors are favouring equity and mixed asset funds with property funds also doing well.”