Fund market hits record highs on the back of vaccine breakthrough and clear US election outcome
November 2020 was a month of record highs for the fund market as savers invested GBP8.3 billion, according to the latest figures from the Investment Association.
Net retail sales reached a record monthly high of GBP8.3 billion, half of which went into equity funds, topping the previous record of GBP5.7 billion net retail sales from September 2017.
Responsible investment funds continued to experience strong inflows, with a new monthly high of GBP1.1 billion in net retail sales.
Both active and tracker funds also experienced record monthly inflows in November 2020 of GBP5.3 billion and GBP3 billion, respectively, while The IA’s Global sector saw a record GBP1.7 billion in monthly inflows.
Chris Cummings, Chief Executive of the Investment Association, says: “Savers’ confidence was boosted by news of the coronavirus vaccine breakthrough and a clear outcome in the US election with a record GBP8.3 billion placed into funds in November 2020. Equity funds benefited most with GBP4.1 billion invested, while strong inflows into global equity and responsible investment funds continued as both broke new record monthly highs. Given the rocky start to 2021 with surging coronavirus cases, it remains to be seen whether investor confidence will continue into the new year.”