During May almost £2 billion was invested into fixed-income retail bonds as markets began to stabilise and recover from the initial impact of COVID-19.
The latest figures from the Investment Association (IA), have revealed that fixed-income funds were the best-selling asset class in May 2020.
May was a strong month for investments with investors piling cash into retail funds. However, property-related investments were the only asset class to experience net outflows, with £21 million withdrawn from portfolios.
The data from the Association shows that £4.7 billion was invested over the month, 370 per cent more than the £1 billion invested during the same period last year.
The IA’s Chief Executive, Chris Cummings, said: “It was steady as she goes for the fund market in May, as net retail sales continued their stable recovery after significant outflows in March.”
During the same period, active funds saw £3.5 billion invested, which was more than double the £1.3 billion invested in passive funds.
Responsible investment funds also saw £911 million sunk into them during May, bringing their overall share of the market to 2.5 per cent.
Tracker funds also saw a net retail inflow of £1.3 billion in May 2020, meaning the overall share of industry funds under management was 18 per cent.
The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.