The sector represented 23 per cent of gross retail sales of UK domiciled funds in January with 88 per cent of gross retail sales via intermediaries.
Inflows were £1bn with the biggest outflows suffered in the Europe excluding UK sector which lost £212m.
Funds under management of UK domiciled investment funds have dropped 2 per cent in January, down to £354.2bn from £360.7bn the previous month.
UK domiciled Isa funds under management of £70.8bn are 4 per cent down on December’s figure of £73.6bn and 15 per cent lower than the previous year.
Net sales of UK domiciled investment fund Isas slowed with inflows of £1.4m compared to inflows of £52.3m in December but performed better than January last year which saw outflows of £335.3m.
UK domiciled net retail sales of £1.2bn were made up of £1.4bn in bond funds and equity outflows of £202m.
Overseas funds under management took a hit in January, falling 5 per cent on December to £15.2bn. Overseas Isa assets also fell 7 per cent on the month to £229m.
Chief executive Richard Saunders says: “”Over the last three months investors have been adding to their holdings at a significant rate, with bond funds doing particularly well in December and January. And while ISA sales were modest compared to December, they were still a marked improvement on previous months’ sales outside of the ISA season.”