The month saw the largest outflows so far this year.

Gross retail sales for UK intermediaries including IFAs totalled £8.8bn, representing a market share of 36.2%. This was a slight fall in the total (August: £8.9bn) but an increase in the market share (AugustL 31.5%).

Despite the outflows in September, the third quarter saw £1.2bn in net inflows. This compares to £3.9bn in net inflows in Q1 and £2.2bn in net inflows in Q2.

Equity funds turned to outflows of £1.6bn, following moderate inflows in August.

Mixed asset funds saw moderate inflows, increasing to £781m from August’s inflow of £478m.

Outflows from fixed income slowed to £79m, from £298m in August.

Responsible investments saw its highest outflow on record with outflows of £544m.

The UK All Companies was the worst-selling sector, with £884m in outflows.

UK Gilts were the best-selling sector with inflows of £237m.

Chris Cummings, chief executive of the Investment Association, said:  “Investors continue to be squeezed by inflationary pressures and the cost of living, as net inflows into funds experience their second quarter of decline. Despite £1.2 billion invested in funds between July 1 and September 30, this is down on the first quarter of the year, which saw almost £4 billion invested.

“UK Gilts continues to be a favourite throughout the uncertainty and was the best-selling sector in September, and an increased inflow into Mixed Asset funds was a bright spot in a challenging month.”

The month ended with £1.38trn of funds under management. This was a slight fall from the total funds under management in August (£1.39trn).

The Investment Association's figures for fund sales cover retail and institutional sales in authorised unit trusts and open-ended investment companies (OEICs) provided by our membership to UK investors. The figures do not include investment trusts and ETFs.