Retail fund sales topped £5.3bn in August, the first time retail fund sales in the month of August have exceeded £5bn, according to figures from the Investment Association.

The August figure compares to inflows of £4.8bn for July.

Gross retail sales through UK intermediaries, including financial advisers, totalled £6.6bn, representing a market share of 28%.

Responsible investment fund inflows continued to rise for the 7^th month this year, exceeding £1bn in August. Responsible investment funds under management stood at £85bn as of the end of August. Their overall share of industry funds under management was 5.4%.

UK equity funds took a big hit over the month with £445m of outflows in comparison to inflows of £259m in July.

Chris Cummings, chief executive of the Investment Association, said: “We have seen significant net retail sales to funds through the whole of summer 2021. Investors channelled £14.5 billion into funds from June to August as rising inflation combined with low interest rates continues to make funds attractive for savers.

“Responsible investment funds have consistently captured the interest of UK savers, who invested over £1 billion for the seventh consecutive month. UK investors are maintaining their commitment to deploying their capital for environmental and social good as well as seeking a financial return.

"In the run-up to the COP 26 climate conference in Glasgow, and as the UK government commits to generating 100% of electricity from renewables by 2035, investors can play an important role in helping to support the transition to Net Zero.”

The worst-selling Investment Association sector in August 2021 was UK All Companies with an outflow of £354m. Global was first with net retail sales of £838m.

Funds under management for both net and retail investment were £1.6 trillion in August in comparison to £1.3 trillion in August 2020.