Equity funds bounced back to net inflows in October, with the sector showing signs of recovery following a bruising third quarter of record outflows.
Investors ploughed £648m into equities in October in a much-needed boost for the funds following £1.7bn outflows the previous month, according to data from the Investment Association (IA).
“Following a tough third quarter of record outflows, equities experienced a modest revival,” said IA chief executive Chris Cummings.
Overall savers poured £2.5bn in funds in October, with £1.3bn of this invested into bond funds.
Fixed income, mixed asset and money market asset classes all also experienced net inflows.
“As a year of political and economic uncertainty draws to a close, savers are considering all their options,” said Cummings.
Property funds experienced outflows of £133m in October – the 13th consecutive month of outflows amid concerns over the impact Brexit could have on property prices.
The latest IA figures come after M&G suspended trading in its £2.5bn property fund yesterday as investors rushed to redeem their money.
AJ Bell personal finance analyst Laura Suter said the M&G suspension meant that “all eyes” would be on the property fund sector.
“The M&G closure shouldn’t be a reason for panic selling across the sector, but instead it’s a good time for investors to check the cash levels in their funds, assess the liquidity in those portfolios and ensure they are comfortable with the holdings,” said Suter.