Net sales for fund Isas hit £1.1bn for the 2012/13 tax year, of which nearly £350m was through transactions made over the first five days of April, data from the Investment Management Association has revealed.
Between 1 April 2012 and 31 March 2013, IMA £ strategic bonds were the top-selling sector with £387m of sales. Mixed investment 20-60 per cent shares was the second most popular sector during this period, followed by global equity income, global emerging markets and Asia pacific excluding Japan.
Tracker funds saw the highest outflow in seven years in March with £137m of redemptions.
The IMA also revealed mixed asset funds were the best-selling asset class in March with net retail sales of £291m.
IMA chief executive Daniel Godfrey says: “The last minute rush into Isas at the end of the tax year appeared again with £347m invested in the first five days of April alone.
“Overall sales were lower in March compared to recent months. The sector rankings for the month both for Isas and funds in general suggest that investors are spreading their money across different asset classes and that both growth and income strategies are in demand.”
AWD Chase de Vere head of communications Patrick Connolly says: “We saw strong performances in stock markets so we had renewed investor confidence. This is still fragile and it will not take much to turn investor confidence around.”