Equity funds saw the brunt of the fall, with outflows of £373m.
UK gilts were the most popular sector for UK-domiciled net retail sales in October, with inflows of £154.8m, while the specialist sector saw outflows of £256.1m, with property funds accounting for £117.2m of the losses.
Net retail sales for absolute return funds also saw outflows of £33.2m, the first time that the sector has seen losses since it was introduced by the Investment Management Association earler this year.
Chief executive Richard Saunders says: “The outflow means that in three of the last four months, retail investors have been net sellers of funds.
“But the October outflow remains relatively modest compared with funds under management, at around a 0.25 per cent. For the first 10 months of this year, retail investors have added £1.3bn to their holdings. There are no signs of large-scale selling by retail investors.”
Assets under management fell by 11 per cent to £338.9bn, down from £379.8bn in September.