Data released by the Investment Management Association (IMA) shows Individual Savings Accounts (ISA) recorded their best sales in nine years in the last financial year.
ISA sales between March 1 and April 5, the last day of the financial year, was recorded at £956 million while total sales for the extended tax-year stood at £3.7 billion, second highest in ten years.
Total contribution towards ISAs stood at £106.4 billion, roughly 18% of all assets under management.
In March alone, funds housed in UK saw net sales of £1.9 billion. Equity topped the table among asset classes with total sales of £739 million for the month followed by balanced funds with £411 million.
The £ strategic bond was the top IMA sector in March with total sales of £337 million followed by global, with total sales of £287 million. Cautious managed sector came third with an investment of £255 million for the month followed by UK absolute return.
Despite having hit by devastating earthquakes, tsunami and nuclear radiation crises, Japan focused funds took the fifth slot and attracted investments worth £146 million.
The Asia Pacific region outside Japan returned dismal figures with total outflows recorded at £185 million. China focused funds also witnessed net withdrawals of £25 million for the month.
Traditional British sectors such as £ corporate bond, UK gilts and UK equity & bond income along with traditional European equity sectors also witnessed net outflows. The three UK sectors are expected to give lower returns because of high inflation.
Funds under management on investment platforms stood at £109 billion while net retail sales through platforms stood at £1.2 billion for the month of March; the best figure since January 2008.