UK equity finds saw net retail outflows of £142m in April, according to latest figures from the Investment Association.
Overall, retail investors put £2.4bn into investment funds in April, with £931m going into Isa accounts.
AJ Bell personal finance analyst Laura Suter says since Brexit £7.9bn has poured out of UK stock market funds, with £1.8bn coming from UK Equity Income funds, and £5.8bn from UK All Companies funds.
Suter says: “Investors tentatively moved back into the UK Equity Income sector in April, but UK stock market funds overall still saw outflows of £142m in the period.”
She adds: “However, investors are getting more bullish and returned to equity markets in force, committing £1.6bn during the period. Fears of escalating trade wars, ongoing tensions with North Korea and rising interest rates have not deterred investors from the US, or global markets, which together saw more than £1bn of the equity inflows.”
IA fund market specialist Alastair Wainwright says investors in UK equities were rewarded with good performance in April, with the FTSE 100 returning 6.8 per cent and FTSE All Share returning 6.4 per cent.
Wainwright says: “This was helped in no small part by an increase in the price of oil which boosted the energy sector. The sector average return for the UK Equity Income sector, according to Morningstar, was 6.3% with the best performing fund in the sector making 9.6% through April.”
The IA figures also show £256m was invested into funds through Isa wrappers between 1 April and 5 April and £675m in the rest of the month.
IA chief executive Chris Cummings says: “After the last minute rush at the beginning of April, savers were out in force for the new tax year.”