Sunday, June 9, 2024 In April 2024, UK domiciled funds experienced a surge in net retail sales, reaching £2.8 billion, the highest since August 2021. This increase, as reported by the Investment Association (IA), was significantly influenced by the ISA season, which encouraged savers to maximize their £20,000 personal allowance from the previous tax year or to capitalize on the new tax year’s allowance for their investments.
The consistent preference for global equity funds was evident with another £1.3 billion inflow in April, matching the high from April 2021. This trend reflects diminishing fears of recession triggered by ongoing interest rate hikes.
Anticipation of potential rate cuts later in the year, which generally promote higher share values and economic growth, also played a role in bolstering equities. Global equity funds continue to attract investors seeking diversified exposure to various markets at a lower cost, underscored by the significant contributions from tracker funds. Monthly Net Sales in the Global Sector (January 2019 – April 2024) Miranda Seath, Director, Market Insight & Fund Sectors at the Investment Association, said: “The positive inflows for April signal the green shoots of investors’ increasing confidence.
The sharp rise in inflows can partly be attributed to the new tax year, with strong ISA sales during April as investors sought to maximise their personal allowances. Tracker fund sales reached a new record of £3.8 billion in April, .
