UK retail investors pushed £2bn into funds in March, the highest monthly inflow since December 2021.

All asset classes, apart from money market funds, saw inflows in March, according to data out today from the Investment Association.

Equity funds and mixed asset funds saw inflows of £643m and £745m respectively.

Outflows from UK equity funds slowed to £835m compared to the previous four months, which had all seen monthly outflows of over £1bn.

Gross retail sales through Financial Planners and IFAs were £10.1bn, representing a market share of 33.1%.

Sales via UK fund platforms were £14.2bn, representing a market share of 46.4%.

Chris Cummings, chief executive of the Investment Association, said: “In a sign of the continuing popularity of ISAs, savers stepped-up their investments by putting £2 billion into funds in March, adding up to a £4.1 billion investment into funds in the first quarter of the year.

“In March, with the approaching end of the tax year coinciding with a better-than-expected forecast from the Office for Budget Responsibility, investors took the opportunity to invest across all major asset classes and maximise on their tax-free ISA allowance.

"Our research shows that the majority of investors see investing as delivering better long-term returns, with 41% of investors intending to put more money into their ISAs this year, than in the previous tax year.”  

The best-selling Investment Association sector for March was the short term money market segment with net retail sales of £667m.

Corporate Bonds also saw strong inflows with net retail sales of £529m.

Responsible investment funds saw a net retail inflow of £298m in March, with funds under management standing at £94.5bn at the end of the month.