Equity funds experienced net outflows in July for the first time since February 2009 as investor confidence was shaken by market volatility.
The Investment Management Association reported net retail outflows of £114m, compared with net retail sales of £487m in the prior month.
The UK all companies sector fared worst during June, according to IMA statistics, plummeting down the best selling table.
The fifteenth best-selling sector in June, was ranked worst in July, with net retail sales of £47m turning into net outflows of £180m.
North American funds shared a similar fate as inflows of £8m in June were replaced by outflows of £81m in July.
IMA chief executive Richard Saunders says: “While sales of bond funds and balanced funds held up moderately well, equity funds experienced outflows, particularly from UK, European and North American sectors.”
Investor appetite for global funds also declined in July dropping from the top of the best selling sectors to the tenth in the space of a month.
The global sector had been the most popular in June, taking £332m in net retail sales, however, in July sales declined to £42m.
The Cautious Managed sector resumed its position as the best selling sector in July, having previously fallen behind both the global and sterling strategic bond sectors in June.
There were also disappointing Isa sales in July as they too experienced the lowest rate of sales since February 2009.