Retail sales positive but equities still out of favour in 'damp squib' ISA season

Investors return to funds ahead of ISA deadline

Jayna Rana
clock • 2 min read

Net retail sales turned positive in March, after two months of large outflows at the start of the year, but investors continued to exit UK equity funds, the latest statistics from the Investment Association (IA) reveals.

Total net retail sales for March were positive with inflows of £379m, after outflows of £436m and £399m in January and February respectively during a volatile start to 2016.  Ahead of the ISA deadline, fixed income funds were the best-selling asset class with net sales of £235m, following by mixed asset funds at £190m and money market funds at £141m. However, equity funds saw a net retail outflow of £459m. This is the third month in a row that the asset class has seen outflows.  The biggest hit was in UK equities, which suffered £430m in outflows. Global and Japanese equity fund...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on ISAs

Reeves' ISA shakeup 'a step in the right direction' as Lifetime ISA set to be replaced

Reeves' ISA shakeup 'a step in the right direction' as Lifetime ISA set to be replaced

Consultation in 2026

Linus Uhlig
clock 27 November 2025 • 3 min read
Budget 25: Reeves slashes cash ISA allowance to £12,000 but over-65s exempt

Budget 25: Reeves slashes cash ISA allowance to £12,000 but over-65s exempt

From April 2027

Linus Uhlig
clock 26 November 2025 • 1 min read
TISA CEO: Cash ISA limit cut would pose targeted support barrier

TISA CEO: Cash ISA limit cut would pose targeted support barrier

Comments follow speculation on ISA changes

Jen Frost
clock 12 November 2025 • 2 min read