UK domiciled ISA funds under management hit £54 billion last month, down 2 per cent from June and 12 per cent higher than the previous year.
The IMA says the increase in funds under management is mainly due to the inclusion of additional institutional funds from January 2007.
Net sales of UK domiciled investment fund ISAs dropped to £90 million in July, 17 per cent less than June and down 28 per cent from July 2006.
The most popular UK domiciled ISA sector in July was the UK All Companies sector, accounting for 28 per cent of gross ISA sales.
IMA chief executive Richard Saunders says lower UK funds under management reflect the fall in the market in July.
He says: “Net retail sales continued at the healthy levels of the last two years spread across a number of asset classes. The dominance of property funds in retail sales was less pronounced than in recent months.”