Corporate bonds accounted for the highest number of net sales in Q3 at 26 per cent but the cautious managed sector was close behind with 21 per cent.
September saw corporate bond funds knocked off the top selling spot for the first time in a year by the cautious managed sector, according to the firm.
Cofunds says net and gross sales in global emerging markets and the property sector have also picked up.
Business development manager Michelle Woodburn says: “The cautious managed sector returning to favour is what we would typically expect to see and is a sign of markets returning to normality. Looking to Q4 although we expect corporate bonds will continue to do well, cautious managed is likely to gain in popularity again, as diversified sectors are known to perform well in difficult climates.
“With signs of recovery appearing we also expect to see advisers opting for slightly higher risk funds.”