Platforms continued to dominate sales by distribution channel. In July, gross retail sales for UK fund platforms totalled £12.2bn, representing a market share of 50%. Gross retail sales through UK intermediaries including Financial Planners were £6.2bn, representing a market share of 25%.

However, UK savers pulled money out of equities in July. Equity funds experienced outflows of £609m, driven by UK equities.

Bonds were the most popular choice for investors. Bond funds saw net retail sales of £1.8bn in July.

Responsible investment funds experienced another month of strong net retail sales with £966m invested in July. Responsible investment funds under management stood at £34 bn as of the end of July. Their overall share of industry funds under management was 2.7%.

Tracker funds were also popular with UK investors in July, with net retail inflows of £1.4bn.

Chris Cummings, chief executive of the Investment Association, said: "The fund market maintained a steady course in July as savers invested £1.6 billion. Bond funds took pole position, with net retail sales close to £2 billion for the third consecutive month, as investors sought out new sources of income.

“Responsible investment funds have sustained their strong appeal during the coronavirus pandemic, with savers investing almost £1 billion for the third time since April.”