The Cautious Managed sector continued to be the most popular for the fourth consecutive quarter, according to Cofunds.
Its second quarter analysis of the UK investment industry also found property funds have begun to settle, after a year of major redemptions.
During the second quarter of 2008, IMA Cautious Managed funds accounted for 32% of net sales and 19% of gross sales on Cofunds, making them the most popular investment type over the past year.
However, although UK Equity Income remains the largest sector in terms of total assets, there was a significant decline in popularity, with net sales falling from 8% in Q1 to just 2% in Q2.
Overall, the top ten IMA sectors accounted for 82% of net sales, while a further 17 sectors made up the remaining percentage of sales or saw slight redemptions.
Invesco Perpetual was the top fund manager, accounting for 12% of all sales, while the top ten accounted for 60% of all gross new business in the second quarter of 2008.
Cofunds' research also found the property fund market is beginning to settle after a year of severe turmoil. Some funds saw small sales levels, while others saw minor redemptions, leaving the sector broadly stable.
Overall, Cofunds found those funds with a diversified and global exposure are increasing in popularity, as well as cautious funds, but notes that some aggressive funds also sold well during the last quarter.
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