UK savers put £1.1bn into funds in November 2023, with equity, fixed income and mixed asset funds now seeing inflows, the Investment Association (IA) has found.
The IA said this increase in investment “was primarily driven by Tracker fund sales”.
Tracker/exchange-traded funds (ETFs) saw inflows of £2.7bn, the highest inflows since April 2021, equity funds experienced inflows of £991m, an increase from October’s £488m in outflows.
Fixed income and mixed assets funds saw inflows of £366m and £414m, respectively.
Responsible investment funds remained in the red, with outflows of £459m, although this is down from £544m in outflows the previous year.
The IA has also named the top five best selling fund sectors for November 2023.
They are UK gilts with net retail sales of £548m, infrastructure with net retail sales of £241m, high yield bond with net retail sales of £190m, volatility managed with net retail sales of £165m and North American fifth with net retail sales of £133m.
The worst-selling IA sector in November 2023 was mixed investment 20-60% shares, which experienced outflows of £575m.
IA chief executive Chris Cummings said: “In November 2023, we saw savers return to put money into funds, as most asset classes bounced back after a challenging third quarter of the year.
“With inflation easing, there is a glimmer of hope on the horizon that we may see less restrictive monetary policy and cuts in Central Bank rates in 2024. The latest flow data suggests this has boosted both consumer confidence and wider market sentiment.”
This news comes as Square Mile released nine funds investors should look out for in 2024 due to the “talented” managers who run the investment vehicles.
The funds are the Polar Capital Global Insurance fund, the Redwheel Global Emerging Markets fund, the Comgest Growth Europe Smaller Companies fund, the Liontrust Special Situations fund, the Man GLG Sterling Corporate Bond positive prospect fund, the Wellington Global Impact Bond fund, the Artemis US Smaller Companies fund, the WHEB Sustainability fund and the Ruffer Diversified Return fund.
