Nine-year high for investments

People invested 1.15bn into UK-based unit trusts and OEICs (open-ended investment companies) ISAs during April, once those who cashed in investments or moved them elsewhere had been stripped out.

This was the highest level since April 2001, and 63 per cent more than in April last year, according to the Investment Management Association.

Total net investments by consumers into all types of investment funds were also strong at 2.32bn – the highest level since November last year. The group said net sales had now averaged more than 2bn a month for the past year, as record low interest rates caused people to look for alternative homes for their cash.

The high level of inflows into the funds is in contrast to 2008, when people withdrew more than they paid in during four months of that year, while average monthly investments were just 318m – a sixth of the current level.

Richard Saunders, chief executive of the Investment Management Association, said: "April had the highest net retail sales so far this year – and funds under management once again reached record levels.

Bonds continued to be the most popular asset class during April, accounting for 27 per cent of all investments.