According to the Investment Management Association, fund sales fell by almost 85% during April and May this year. The IMA said that sales of funds had fallen from £801m to just £126m. ISA sales also dropped by over 70%.
Our View
This is typical of the financial climate we are currently in. Since the year 2000, investment funds have plummeted in value, knocking billions off investors bottom lines. What has happened since the low point in March last year is that World stock markets have started to recover, albeit very slowly. The FTSE 100 in the UK has almost settled itself back around the 4,500 mark and this is obviously enough for some investors to get their money out. When investor confidence returns again, fund managers will see greater investment for the chance of greater returns.