After an ISA season last year the IMA described as the worst on record and forecasts of another poor period in 2008/9, figures for March show investors returned in their droves to the tax-efficient savings option.
Net sales of UK domiciled ISAs were £321m in March, it says, an increase on February's outflows of £112.5m and a huge advance on the £47.5m inflow in March 2008.
In total the 2008/09 tax year saw net ISA outflows of £975m, which compares favourably with the £1.7bn outflows seen in the 2007/08 tax year.
The 2008/09 ISA season saw encouraging inflows up 74% year on year, with total inflows of £529.1m, while the most popular sector in the latest financial year was UK All Companies, which accounted for 21% of gross sales.
Outside of ISAs, Corporate Bonds maintained its position as the number one net retail sector with March inflows of £935.1m, while Europe ex-UK suffered net outflows of £88.3m, worse than any other sector.
"This year's ISA season saw significantly greater net investment than 2008," IMA chief executive Richard Saunders says.
"At the same time the strong inflows into bond funds of the last few months have been maintained. As a result, net retails sales for March were the highest they have been since April 2007."
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created