Flows into UK domiciled funds in April this year reached their highest levels in three years.
Net retail sales totalled £2.8bn in April 2024, the highest level since August 2021, according to data published by the Investment Association today (June 6).
Miranda Seath, director of market insight and fund Sectors at the Investment Association, said it signals the “green shoots of investors increasing confidence”.
This was up from £504mn in March and the trade body said this was boosted by Isa season.
The best selling sector was global, with net retail sales of £1.3bn, the highest since £1.8bn in April 2021.
Records seen in tracker funds with inflows of £3.8bn in April, topping the previous high of £3bn in November 2020.
Most of this went into equity trackers at £2.6bn but all asset classes saw inflows in April.
Seath said: “As we head to the polls in the UK on July 4, it remains to be seen how the UK election will impact investor attitudes, particularly the extent to which it will influence investor demand for UK equities, which have remained in outflow through Q1.
“The next elected government will have limited fiscal headroom and will be required to balance competing spending priorities, but despite these constraints, there will be an opportunity to restore stability to the UK economy as UK inflation continues to calm and we see tentative growth.”
However, she added the outcome of November elections in the US will be the most significant for markets regardless of who wins.
She said investors will be watching the implications of elections around the world for the implications on the global economy.
In April, global funds dominated overall inflows as UK investors looked for global diversification in. As elections results roll in around the globe, investors and markets will be watching the implications for the global economy.”
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