Bond funds accounted for almost one in four stocks and share Isa sales in January.
Comprehensive data on fund sales for January 2009 have been released by the Investment Managers Association (IMA), showing declining inflows.
The industry association showed that sales of stocks and shares Isas cooled over the month, with inflows falling from £52.3 million in December to just £1.4 million. However, the IMA suggested that seasonal factors could have been at play, causing the drop.
Elsewhere, corporate bond funds were revealed to be doing particularly well, with £ Corporate Bond the single most popular sector for funds in January. The sector recorded 23 percent of overall gross fund sales and received £1 billion of net inflows.
For Isas alone, UK All Companies was the most popular category, encompassing 22 percent of sales.
Richard Saunders, chief executive of the IMA commented: "Over the last three months investors have been adding to their holdings at a significant rate, with bond funds doing particularly well in December and January.
"While Isa sales were modest compared to December, they were still a marked improvement on previous months' sales outside of the Isa season."
Investor confidence has been battered over recent months, with the worsening of the global credit crisis causing increased turbulence on the equities markets. The latest round of bad news from the banking sector has continued the rout this week, sending the FTSE 100 down to its lowest level for six years today.
