Private Investors Pour Record Sums Into Funds

(Telegraph) – RECORD AMOUNTS WERE POURED into unit trusts and Open Ended Investment Companies (OEICs) by private investors during the second quarter, according to the Investment Management Association.

The Investment Management Association (IMA) said that net retail sales reached £2.5bn in June compared to a net outflow of £126m in June the previous year. It said that the total amount invested by private investors had reached £7.4bn during the second quarter this year and was now the highest on record.

The appetite for equities has increased — around £990bn went into equity funds, although £897m was invested into bond funds

Richard Saunders, chief executive of the IMA said: ‘Investors have been coming back to the market in recent months and June saw a continuation of this trend. Retail investors have begun over the last two months to put money into equity funds, particularly international equities, as well as bond funds. As a result net retail sales in the second quarter were the highest on record and net ISA sales the highest for six years.’

The FTSE100 index, has had its longest winning streak since January 2004 and has risen by about 31% since a six-year low in early March. The last time the blue-chip index did so well was when it rose for 11 consecutive days over the 2003/4 New Year period. The amount of money invested in unit trusts during May was the highest since records began in 1960, outside the ISA season.

But despite the inflows from private investors total funds under management fell to £389.3bn from £391.6bn in May and down 9% on the same period of 2008.

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