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Investment in funds at record levels

Individuals invested billions in funds in 2009

Research has shown that private investors bought into funds at record levels towards the end of 2009.

Statistics for November from the Investment Management Association (IMA) show that net retail fund sales hit £2.4bn. It was also the eighth consecutive month during which consumers invested more than £2bn in funds.

During the 11 months to the end of November 2009, individuals put a total of £23.6bn into funds – more than 10 times the amount that was invested over the same period in 2008 (£2.3bn).

Investing money in Isas

The IMA also reports that net Isa sales reached £2.6bn between January and the end of November 2009. This represents the highest level of investment in Isas seen since 2002.

Isas offer consumers the opportunity to earn tax-free interest and gains on a proportion of their savings, and as a rule it is sensible to take advantage of your Isa allowance before starting to save elsewhere.

Richard Saunders, chief executive of the IMA, commented: ‘It is good to see investors once again taking advantage of the benefits of Isas after several years of net outflows.’

Investing in property

Property funds achieved the best sales results in November for the second month running, according to the IMA. Some £417m was taken in net retail sales, the highest figure achieved since March 2007.

Back in January 2009, property had been ranked 28th out of the 34 sectors tracked by the IMA. The renewed popularity of property funds may reflect increased confidence in UK house prices.

Investment advice

For impartial, independent information on investing, check out the online Which? beginner’s guide to investment and our Understanding investment risk page. You can also find advice on specific types of investment on our website, including , structured products and with-profits funds.

Meanwhile, if you’d like to learn more about Isas take a look at our guide and Best Rate Cash Isas review. 

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