Consumer confidence boosted by £2.8bn invested in funds during April
The Investment Association (IA) recently released its key findings for April 2023.
Key takeaways included the following:
- All asset classes saw inflows, with bond and money market funds each attracting £1bn
- Tracker funds experienced another strong month, with inflows of £6bn
- Equity funds saw a second consecutive month of inflows in 2023, with £93m
IA chief executive Chris Cummings said ‘April saw a surge in consumer confidence, with £2.8bn invested in funds, the highest level since August 2021. We have seen investors opt for a cautious approach favouring bond funds, which saw £.1.1bn inflows, and choosing globally diversified equity funds. UK gilts also benefited, with £259m invested in April. Demand for ISAs rose, with £342m invested within the tax-free wrapper, five times more than in the previous month. This was, however, less than the same time last year, with £646m invested in April 2022.’
Funds under management and net sales
The five best-selling IA sectors for April 2023 were:
- Short Term Money Market, with net retail sales of £770m
- Global, with net retail sales of £340m
- UK Gilts, with net retail sales of £259m
- Specialist Bond, with net retail sales of £226m
Mixed Investment 40-85% Shares, with net retail sales of £225 million.