The sector saw net retail sales of £232m in July, up from £214m the previous month.
Overall, funds saw a retail outflow of £491.5m compared with an inflow of £1bn a year ago. Equity funds took the brunt of the loss, with retail outflows of £669m.
Property funds saw outflows of £76.5m but the biggest net retail outflow of £332.1m came from the Europe ex UK sector.
Net institutional outflows from unit trusts and Oeics were £1.9bn, of which £1.4bn came from bond funds.
Total funds under management in UK-domiciled funds stood at £414.3bn, down by 3 per cent from £425.3m in June and by 10 per cent from £458.2bn a year ago.
Director of markets Jane Lowe says: “With the FTSE once more under pressure in July, investors again withdrew from equity funds, with many turning to investment in absolute return funds.
“Total funds under management were also down during the month, in part owing to poor market performance.”