Investors shied away from cash and fixed interest towards the end of 2009 and gradually moved into equity and property investments, according to Skandia.
Its latest analysis reveals UK fixed interest funds remain the biggest sellers on the platform. They account for 23% of sales but this marks a decline from 28% in Q1 2009. Cash and money market funds were the biggest fallers, plunging from 14% of sales in Q1 to 8% in the final quarter.
The BlackRock Cash fund was the top-seller during 2009 but M&G was the best overall performer, grabbing four out of the top 10 selling funds. Corporate bonds dominate the top half of the chart following substantial inflows in the first part of the year.
But as confidence returned to the market against a background of improving economic credentials, investors moved into overseas equities. The Emerging Markets and Global Specialist sectors saw the largest relative increase, more than doubling their share of sales from 2% in the first quarter to 5% in Q4.
UK Equity funds and Managed funds were the second and third most popular sectors, ending the year with 18% and 15% of sales respectively.
Property also regained significant ground, with fund sales climbing from 6% at the beginning of the year to 10% by year-end.
Skandia head of investment marketing Graham Bentley says: "It is interesting to see that these trends are fairly gradual over time which suggests that investors are maintaining a core investment strategy within their portfolios, focused around UK equities, and adjusting the weightings of other asset classes in accordance with the level of investment risk they are prepared to accept in their portfolios.
"This is important because the most crucial element of investing is to understand what level of risk is being taken within the portfolio and to ensure the relationship between that level of risk and the potential return is fully understood by the investor."
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