UK savers put £1.6bn into retail funds in July, according to the latest figures from the Investment Association.

Platforms continued to dominate sales by distribution channel. In July, gross retail sales for UK fund platforms totalled £12.2bn, representing a market share of 50%. Gross retail sales through UK intermediaries including Financial Planners were £6.2bn, representing a market share of 25%.

However, UK savers pulled money out of equities in July. Equity funds experienced outflows of £609m, driven by UK equities.

Bonds were the most popular choice for investors. Bond funds saw net retail sales of £1.8bn in July.

Responsible investment funds experienced another month of strong net retail sales with £966m invested in July. Responsible investment funds under management stood at £34 bn as of the end of July. Their overall share of industry funds under management was 2.7%.

Tracker funds were also popular with UK investors in July, with net retail inflows of £1.4bn.

Chris Cummings, chief executive of the Investment Association, said: "The fund market maintained a steady course in July as savers invested £1.6 billion. Bond funds took pole position, with net retail sales close to £2 billion for the third consecutive month, as investors sought out new sources of income.

“Responsible investment funds have sustained their strong appeal during the coronavirus pandemic, with savers investing almost £1 billion for the third time since April.”