Regular savings in mutual funds posted their best ever sales figures in the third quarter of this ye...
Regular savings in mutual funds posted their best ever sales figures in the third quarter of this year and made up over a fifth of all Isa sales for this period.
Around £516m was invested in two million mutual fund regular savings plans during July, August and September, according to figures from Autif. Isas accounted for £448m of this total, with regular savings making up 22% of all Isa sales.
Total unit trust and Oeic sales overall reached £4.8bn in September, an increase of 47% compared with the same period last year.
But unit trust and Oeic funds under management dropped to £270bn from £280bn due to falls in world stock markets.
Isa sales were £682m during the period, up on the £660m in Pep sales posted in September 1998. More than £172m, 6% of all retail fund sales, went into technology funds but only 1% of institutional sales went into this area of the market. Around £148m went into passive funds, accounting for 5% of all retail sales. Institutional business into trackers was also less than for retail sales, making up around 3% of institutional sales.
Clare Arber, a spokesman for Autif, said: "For novice investors or those of us not lucky enough to have a lump sum to invest, a monthly savings plan is the wise route into the stock market and effective long term savings."
The most popular sectors through intermediaries during September were UK All Companies funds with net sales of around £210m, followed by Europe excluding the UK with net sales of around £192m.
The third most popular sector through IFAs during September was North America, which saw net sales of around £175m followed by Specialist funds on net sales of around £167.5m.
The least popular sector through intermediaries was guaranteed and protected funds where there were net redemptions of around £10.5m while global emerging markets funds saw net redemptions of £7.7m.
Japanese Smaller Companies funds sold through intermediaries saw net redemptions of around £5.9m while UK Equity Income funds sold through the same channel saw net redemptions of around £1.97m.
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