Equities were the best-selling asset class for the third month running in November, according to the latest Investment Management Association (IMA) sales figures.
IMA figures for November show net retail sales of £720m for equities. This is the highest figure since April 2011, when the asset class attracted £1.25bn.
The continued inflows into equities suggest a return of investor risk appetite as their confidence in the global economic backdrop improves.
Equities began seeing significant inflows back in September, with net retail sales of £541m that month.
This was well above the average of $65m outflows over the previous 12 months, and the first time in the last 12 months any asset class surpassed fixed income.
The most popular sector within equities in November was UK Equity Income, with sales at their highest level since May 2007.
This sector attracted inflows of £221m in November, well above its monthly average of £47m over the past 12 months.
In contrast, fixed income sales were at the lowest level since October 2008, falling sharply to £43m. Corporate bonds were the worst selling sector in November with a net outflow of £172m.
As bonds continue to deliver meagre yields, investors are turning away from this traditional 'safe haven' asset class in search of better returns.
The second best-selling asset class in November was mixed assets, with net retail sales of £356m, the highest since April 2012.
ISAs also saw the first inflows since June of £44m in November. The three most popular ISAs over the month were Mixed Investment 20-60% Shares, £ Strategic Bond, and Mixed Investment 40-85% Shares.
Total funds under management reached record levels at £652bn, 15% higher than November 2011, with fund net retail sales remaining over £1bn for the third consecutive month.
Daniel Godfrey, IMA chief executive, said: "Net retail sales were strong again in November with equity funds the strongest sellers for the third month in a row. This is partly due to investors preferring equity income over fixed income for income generation.
"With record funds under management, the funds industry is now managing funds worth over 50% more than in August 2008 just before Lehman's collapse and the full onset of the global financial crisis".
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