End of tax year investor rush drives positive fund sales in March
The Investment Association today publishes its monthly statistics for authorised investment funds for March 2016 which show:
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Net retail sales back in the black at £379 million
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Fixed Income, Mixed Asset and Targeted Absolute Return funds were in vogue amongst cautious investors
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Equity funds, however, saw an outflow of £459 million
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Tracker funds continued to be popular with net retail sales of £393 million
Guy Sears, Interim Chief Executive of the Investment Association, said:
"Retail sales turned positive in March as investors sought to make the most of their pension contribution and ISA allowances ahead of the end of the tax year.
"Retail investors remained cautious and reduced their holdings in equity funds, looking instead to multi-asset, absolute return and fixed income products. It is a sign of the times, with changing pension regulation and uncertainty in the global economic outlook, that multi-asset and absolute return products have been popular with retail investors. These sectors have grown in recent years as our members have reviewed existing products and introduced new funds to meet investors’ changing needs.
"Tracker funds also remained popular with retail investors, and now make up nearly 13% of industry funds under management. Active and passive investment strategies can both play a part in helping people meet their investment goals."
