Investor sentiment showed signs of recovery in April, with investment fund sales down by just 10 per cent on the same month last year.
Total gross sales of unit trusts, Isas and Peps were £5.05bn for the month, down from £5.67bn in April 2000.
This compares with much worse figures for March, when fund sales were down by more than 25 per cent on the same time last year.
Credit Suisse Asset Management recorded its best-ever month of sales in its eight-year existence, following the recent success of Bill Mott's equity income funds.
The two funds are first and second in their sector over one year as well as being currently ranked among the top-10 performing unit trusts across all sectors.
IFAs remained the most dominant distribution channel for investment funds during April, accounting for 45 per cent of all Isa sales.
However, direct channels have gained significant ground, now representing 27 per cent of the Isa market compared with 16 per cent when Isas were first introduced in 1998.
The most popular sectors recommended by IFAs in April were UK all companies, UK other bonds, Europe and global growth.
Credit Suisse Asset Management managing director Ian Chimes says: “We are seeing a lot of intermediaries looking at portfolios a year after the technology bust and looking at how they are going to reorganise Pep and Isa portfolios. As a result, people are moving away from riskier products and looking for more core funds.
“For us, money has come predominantly into our Transatlantic and income funds.”