Europe ex UK saw outflows of £36.6m while corporate bonds was the most popular sector for the ninth month in a row.
Corporate bonds took a total of £466.6m in July, down on £533.3m for June.
Total net retail sales stood at £2.3bn in July, down on £2.5bn in June but up on the £552.8m outflow in July 2008. Bond funds accounted for £829m of sales, with £711m from equities.
IMA director of markets Jane Lowe says: “Retail sales continue to be robust, with strong inflows seen since late last year. Corporate bonds continue to attract investors, but more recently equity fund sales have also grown and are now almost on par with bond funds.”
Hargreaves Lansdown senior analyst Meera Patel says: “I am not surprised. Europe is not that bad a place to invest but, in volatile markets, people tend to move their assets around and Europe is one of those areas with a stigma about it.”