Retail investors piled into risk-managed funds in November, with the Volatility Managed sector the best-seller for the first time since its launch in 2017, according to the latest Investment Association (IA) statistics.
The Volatility Managed sector saw a record high of £411m in net retail sales, more than double the average monthly inflows since its launch and comprising a quarter of all fund sales.
In second and third place were the Mixed Investment 40-85% Shares and North America sectors with net sales of £299m and £292m respectively. The Targeted Absolute Return sector was the worst seller with outflows of £656m.
Meanwhile, investors flocked back to UK equities, with net retail sales of UK equity funds reaching a six-month high in November.
The asset class saw its best month of net retail sales since May 2019, with £108m in inflows in November, placing it third in terms of flows by region.
North America was the best-selling equity fund region in November with net retail sales of £299m, followed by Japan, which attracted £144m. All other equity regions experienced outflows, notably Europe, which haemorrhaged £135m.
Overall, UK investors poured £1.6bn into retail funds in November, although this was down from the £2.5bn invested in October. Overall funds under management stood at £ 1,275bn for November, up from £ 1,259bn in October.
Net retail sales into tracker funds increased by £400m from October, reaching £2.3bn in November and taking total funds under management in tracker funds to £225bn. Their overall share of industry funds under management was 18%.
Investors remained cognisant of investing responsibly, with responsible investment funds attracting net retail inflows of £362m in November, taking funds under management in this area to £26bn and representing 2% of industry funds.
IA chief executive Chris Cummings commented: "Amid the noise of the General Election campaign, savers invested £1.6bn into funds in November, with UK equity funds seeing their first inflows since May.
"Investors however maintained a keen interest in risk management, with sales of volatility managed funds reaching a new record at more than double the average monthly inflows since the sector launched at £411m, and accounting for a quarter of all fund sales."
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