Wary investors, tired of their losses over the past three years made December 2002 a month to forget...
Wary investors, tired of their losses over the past three years made December 2002 a month to forget according to the Investment Management Association's latest monthly figures, which show that net fund sales and net ISA sales declined on both a monthly and annualised basis.
Retail sales took the biggest plunge as net sales of £296m paled compared to the £606.5m figure recorded in the same month one year earlier.
Net ISA sales were £211.3m compared to £264.8m in December 2001.
And not only were investors investing less, they were also investing less audaciously, with a whopping 25% of retail business going into corporate bond funds.
The IMA remains upbeat, however, noting that investors still managed to invest some money compared to the situation in other European markets and North America.
Another trend clearly seen was the rise and rise of the OEIC: from 62 OEIC sub-funds on offer in December 2001, the industry grew to 931 products on offer by the end of December 2002.
As a proportion of all funds under management, OEICs now account for 53% of the industry compared to 35% in 2001.
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