All asset classes, apart from money market funds, saw inflows in March, according to data out today from the Investment Association.

Equity funds and mixed asset funds saw inflows of £643m and £745m respectively.

Outflows from UK equity funds slowed to £835m compared to the previous four months, which had all seen monthly outflows of over £1bn.

Gross retail sales through Financial Planners and IFAs were £10.1bn, representing a market share of 33.1%.

Sales via UK fund platforms were £14.2bn, representing a market share of 46.4%.

Chris Cummings, chief executive of the Investment Association, said: “In a sign of the continuing popularity of ISAs, savers stepped-up their investments by putting £2 billion into funds in March, adding up to a £4.1 billion investment into funds in the first quarter of the year.

“In March, with the approaching end of the tax year coinciding with a better-than-expected forecast from the Office for Budget Responsibility, investors took the opportunity to invest across all major asset classes and maximise on their tax-free ISA allowance.

"Our research shows that the majority of investors see investing as delivering better long-term returns, with 41% of investors intending to put more money into their ISAs this year, than in the previous tax year.”  

The best-selling Investment Association sector for March was the short term money market segment with net retail sales of £667m.

Corporate Bonds also saw strong inflows with net retail sales of £529m.

Responsible investment funds saw a net retail inflow of £298m in March, with funds under management standing at £94.5bn at the end of the month.