UK investors prioritised diversification as global equity and global bonds became the two top best-selling sectors in October 2020, according to the latest figures from the Investment Association.

Mixed asset funds also saw high popularity for the first time since February 2020 with net sales of £1.2bn in October.

Responsible investment funds continued to attract net retail sales and reached £1bn in October for the first time.

UK equity income funds saw a record net retail outflow of £644m in October.

Overall net retail sales were £2.5bn in October.

Chris Cummings, chief executive of the Investment Association, said: “As a second wave of Covid-19 infections became more apparent in October, savers looked to diversify their portfolios by backing global stocks and bonds in an effort to weather the storm. Investors also opted for the relative safety of UK gilts.

“Despite growing Covid-19 uncertainty in October, it is encouraging that savers continued to put their money in funds as net retail sales reached a strong £2.5 billion, buoyed in large parts by consistently strong sales into responsible investment funds.”