Summer inflows continue as investors place £894 million into funds in August

1 October 2026, London – Net retail sales were £894 million in August, marking the tenth consecutive month of retail inflows according to recent data from the Investment Association (IA). This marks a notable change from August 2025, where outflows reached £1.8 billion, underscoring the improvement in investor confidence since the end of last year.

As geopolitical uncertainty persisted, UK retail investors continue to show a preference for fixed income. Investors are opting to invest selectively in equity funds but favoured global diversification in August over investing in UK or US equities. £ Strategic Bond was the best-selling IA sector in August with sales of £367 million, while the IA Global and Global Emerging Markets sectors each took in just over £250 million.

UK equity outflows softened significantly from July, recording -£615 million in August, down from -£1.6 billion the previous month following July’s period of political transition.

Overall, 2026 has seen sustained inflows each month and, whilst historically we see a season sales lull in August, the monthly inflow brings net retail sales for the year to date to £13.8 billion.

Key findings for August 2026

• Tracker funds attracted inflows of £1.6 billion, whereas active funds saw outflows of £707 million in August. Demand for tracker funds remained concentrated in equities.
• Equity funds experienced modest outflows of £478 million, an improvement on July’s £2.0 billion outflow and driven by outflows from active equity funds. Equity index trackers brought in £1.1 billion over August.
• Fixed income funds attracted inflows of £656 million, with £ Strategic Bond being the best-selling IA sector in August with sales of £367 million and strong sales to Mixed Bond funds of £209 million.
• Mixed asset funds recorded inflows of £749 million in August, making it the best-selling asset class for the month and the only asset class to see positive sales in each month in 2026 as investors continued to seek exposure to a ‘ready made’ mix of stocks and bonds.
• Money market funds saw outflows of £728 million. In recent months we have seen a resumption of the typical inflow-outflow pattern following last year’s sustained positive run. Short-Term Money market was the worst-selling sector of the month with £879 million of outflows.
• Volatility managed funds had another strong month of sales, attracting £338 million in August. Volatility Managed was the second best-selling IA sector for the month.
• Responsible investment funds saw outflows of £431 million, an increase on last month’s outflows of £105 million but in line with the funds average monthly outflows.

Why active fixed income is back in focus

Fixed income funds gathered inflows of £656 million in August, bringing total flows for the year to date to a substantial £6.1 billion. Their ongoing popularity reflects continued investor caution. The IA £ Strategic Bond sector, which is predominantly comprised of active funds, was the best-selling IA sector in August with sales of £367 million, highlighting investor appetite for actively managed fixed income strategies, which have the flexibility to adjust to changing market conditions including responding to a changing outlook for interest rates.

UK Gilts faced a more challenging August, experiencing outflows of £183 million, and inflows to Government Bonds narrowed to £62 million, down from £674 million in June and £333 million in July.  The fall in sales comes as yields continue to rise across US Treasuries and UK Gilts, reflecting market sentiment over the risk that the deficit in the US and the UK continues to rise and expectations for persistent inflation and consequently the decision to raise interest rates.  

Net retail sales to £ Strategic Bond funds and combined other fixed income funds, August 2025 – August 2026

Commenting on the retail funds data for August 2026, Miranda Seath, Director, Market Insight & Fund Sectors at the Investment Association, said:

“August inflows of £894 million marked a tenth consecutive month of positive net retail sales, bringing total net retail sales for 2026 to date to £13.8 billion. Despite the summer break typically slowing flows and a worsening outlook for price inflation as the effects of the prolonged closure of the Strait of Hormuz started to bite UK citizens at the petrol pumps, investors kept their cool and carried on investing through the warmer weather.

“Yet market conditions alone do not determine investor behaviour. The domestic policy environment plays an equally critical role. With the Autumn Budget fast-approaching, it is worth remembering that policy stability is a fundamental pillar of investor confidence. In October 2025, the last full month before the previous Budget, UK retail investors withdrew £4.5 billion from investments, including £1.4 billion from UK equities, amid concerns about reported tax changes.

“Frequent or speculative changes undermine the ability of savers to plan and invest for the long-term. This is reflected in our recent investor polling which found that two in five adults (38%) agree that changing pensions policy in the UK makes it harder to plan for their financial future, rising to 45% among Gen Z.[1] As we look ahead to John Healey’s first Budget, there is a clear argument that providing greater policy certainty can help create the conditions for people to invest for the long-term.”

Full monthly data is available here.

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APPENDIX

FUNDS UNDER MANAGEMENT AND NET SALES – August 2026

	Funds Under Management	Net Retail Sales	Net Institutional Sales
August 2026	£1.75 trillion	£894 million	-£499 million
August 2025	£1.57 trillion	-£1.84 billion	-£393 million

BEST SELLING INVESTMENT ASSOCIATION SECTORS   

The five best-selling Investment Association sectors for July 2026 were:   

• £ Strategic Bond saw net retail inflows of £367.1 million
• Volatility Managed saw net retail inflows of £338.1 million
• Global saw net retail inflows of £256.3 million
• Global Emerging Markets saw net retail inflows of £253.3 million
• Mixed Bond saw net retail inflows of £208.9 million

The worst-selling Investment Association sector in August 2026 was Short Term Money Market which experienced outflows of £879.6 million.   

NET RETAIL SALES BY ASSET CLASS  

• Mixed asset saw £749 million in inflows. 
• Other saw £691 million in inflows.  
• Fixed income saw £656 million in inflows. 
• Property saw £4 million in inflows. 
• Equities saw £478 million in outflows. 
• Money market saw £728 million in outflows.  

NET RETAIL SALES OF EQUITY FUNDS BY REGION*   

• Global funds saw net retail inflows of £568 million. 
• Europe funds saw net retail inflows of £40 million.
• Japan funds experienced inflows of £25 million.  
• Asia funds experienced outflows of £114 million. 
• North America funds saw net retail outflows of £363 million. 
• UK funds experienced outflows of £615 million.

TRACKER FUNDS 

Tracker funds saw net retail inflows of £1.6 billion in August 2026. Tracker funds under management stood at £455 billion at the end of August. Their overall share of industry funds under management was 26.0%. 

RESPONSIBLE INVESTMENT FUNDS 

Responsible investment funds saw a net retail outflow of £431 million in August 2026. Responsible investment funds under management stood at £112 billion at the end of August. Their overall share of industry funds under management was 6.4%.