Funds under management have hit a record level of £744bn as retail investors ploughed £2.2bn into portfolios during July, the highest level since April 2011, according to the Investment Management Association.
Mixed Investment 20-60% Shares was the best selling sector, notching up £291m in net retail sales over the month.
UK Equity Income funds came in second place with sales worth £283m while Global funds were third with £226m.
Funds under management have now grown by more than £100bn over the past 12 months.
IMA chief executive Daniel Godfrey says: “We saw strong net retail sales in July, surpassing £2bn for the third time this year, with the largest part of this net investment going into equity funds.
“Global equity funds were the best-selling, with equity funds invested in the UK, North America and Europe also doing well.”