Figures from the Investment Management Association show that net retail sales were £197m for the quarter to March compared with £3,025m in the first quarter of 2007 and £215m for the final quarter of last year.
Net Isa sales were -£390m, nearly double the outflow of -£198m seen in the same quarter last year but an improvement on the outflow of £-825m in the final quarter of 2007.
However, tracker funds have seen a marked turnround in the first quarter with a net inflow of £65m. This brings to an end six quarters of outflows, with a £59m outflow in the final quarter of 2007 and -£4.9m in the first quarter of last year.
Fund of fund business stayed in positive territory with net sales of £637m for the first quarter this year , a fall from £834m in the last quarter of 2007 and £821m in the first quarter of 2007.
Director of markets Jane Lowe says: “Tracker funds saw a positive quarterly inflow, with a good month in March, after six previous quarters of outflows. This may reflect the cautious improvement in overall net retail sales of funds seen during February and March.
“Investment in funds of funds has remained positive throughout, and although funds under management were down on the last quarter they remain ahead of the same quarter in 2007.”