Sales figures from IFA fund supermarket Cofunds show that income-seeking funds were by far the most popular choice in the recently closed Isa season.
The number of incomeseeking funds in Cofunds' top 20 best sellers has more than doubled this year and represents 16 funds from seven in the previous season.
No smaller company, European or specialist funds made it into this year's top 20 while the number of UK funds has increased from 14 to 17. Distribution funds also make headway this year, with the Jupiter distribution and the New Star managed distribution funds entering the top 20.
Only four equity income funds made the top 20 in the 2002 season but eight funds feature this year, including the two most popular, the Credit Suisse income fund and Liontrust first income fund.
Sales and marketing director Rodney Aldridge says: “Income-seeking funds account for over 80 per cent of the top 20 selling funds. This is the fist year we have seen any cautious managed funds in the top 20, highlighting the investor's need to maintain a balanced and diversified portfolio in a range of assets while reducing their equity exposure.”