Gross sales unit trust and Oeic-based Isas reached £556m in their first month according to figures from the Association of Unit Trusts and Investment Funds.
The unit trust industry now manages 670,000 Isa accounts of which 88 per cent are invested in maxi-Isas.
The figures suggest the investment areas most favoured by these early Isa investors are those previously favoured by Pep investors.
UK growth and UK growth and income funds stole a march on other sectors with net sales of £101.2m and £195.7m respectively.
But the UK fixed interest sector lost ground coming third behind the UK growth and income and UK growth sectors having previously out-sold these sectors at the back end of 1998 and in January 1999.