Government Bonds were the top selling sector for fund sales in May, with net retail sales of £658m.

UK investors put £356m into funds in May, according to the latest data from the Investment Association.

This is a large dip from the £2.8bn put into funds in April and the £1.8bn put into funds in March.

Gross retail sales through Financial Planners and IFAs were £8.4bn, representing a market share of 31.4%. This held relatively steady from April when £9.8bn invested via advisers represented a market share of 34.3%.

Total retail funds under management at the end of the month were £1.38trn, in comparison to £1.46trn in May 2022.

Fixed Income funds saw inflows of £632m.

Global funds were the top selling equity region with net retail inflows of £261m.

Tracker funds also performed well with £1bn of net retail inflows in May.

The worst selling sector in May was UK All Companies, which experienced outflows of £916m.

Chris Cummings, chief executive of the Investment Association, said: “With ISA season behind us, modest inflows continued in May with £356m invested into funds overall.  Caution was the theme of the month, with Government Bonds seeing strong inflows.  This is not surprising given concern about potential global recession and ongoing conflict in Ukraine.

“Investors continued to diversify their equity portfolios, with continued inflows into global equity funds.  However, North America had its first outflow in seven months, possibly reflecting uncertainty ahead of resolution on the debt ceiling. The UK remains unloved amidst persistent outflows.”