Retail investors favoured European equities in August, as exits from UK funds deepened.
UK-focused strategies saw a net retail outflow of £1.4bn, while non-UK equity funds have received £7.9bn in new retail money.
But it was a record month for the industry, according to the Investment Association. Funds under management grew to almost £1.2 trillion.
Investment Association chief executive Chris Cummings said: "Investor confidence in the UK fund industry continued in August with yet another record breaking month of inflows, net retail sales were £3.6bn the highest selling August on record."
Investors looked increasingly beyond the UK, with Europe (excluding the UK) and global equity topping the best-selling sectors list. Net retail sales in non-UK Europe were £507m during the month.
The UK Equity Income was the worst-selling sector in August, with an outflow of £165m.
Equity funds were the best-selling asset class in August with net retail sales of £1.1bn