Net retail sales have seen their best month since May 2007 with total sales of £1,037m during November, according to the latest figures from the IMA.
This compares favourably with October which had seen a severe drop in sales in relation to September, falling £501.1m. Sales were also up compared with November 2007 which saw outflows of £335.5m.
The figures show retail investors are starting to dip their toes in the markets again after a torrid time for fund investments this year.
Of the total sales in November, £512m was invested in equity funds followed by £479m in bond funds.
The most popular UK domiciled sector was £Corporate Bond which saw inflows of £340m while the Specialist sector had the biggest outflows of £101m. Property funds also suffered with outflows of £140m.
Mona Patel, head of communications of the IMA, comments: "November figures indicate that retail investors are taking a cautious stance, preferring to follow a 'hold' strategy whilst markets are volatile."
ISA sales were £11.62m for the month, a little under last month's £11.65m, but remaining relatively unchanged.
Intermediaries were the biggest channel for UK retail investment taking responsibility for 86% of gross sales.
Sales force/tied agents crept ahead of fund supermarkets by £1m in the distribution of ISAs last month with total sales of £155m.IFAonline
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