The Investment Management Association has revealed net sales of Isas dropped by almost £2bn for the 2011-12 tax year.
Net sales for the full tax year of approximately £2.1bn were reported, compared with net sales of more than £4bn for the previous two tax years.
Net retails sales of just £6m were reported during the first quarter of the year.
IMA chief executive Richard Saunders says: “Isa sales in the last tax year were a reasonably healthy £2.1bn, though well down on the previous two tax years.”
The biggest selling IMA sector for Isa sales during March was the sterling strategic bond sector, recording net sales of £53m.
The second best selling sector was the IMA global emerging markets sector with net sales of £35.5m, while the mixed investment 20-60 per cent Shares sector saw net inflows of £35m.