UK savers withdrew £822m from funds in May, the fourth month of net retail outflows so far this year.
Equity funds saw outflows of £1.2bn, whilst fixed income funds saw outflows of £620m over the month.
Tracker funds saw net retail sales of £877m in May, while active funds saw outflows of £1.7bn.
Gross retail sales through intermediaries including Financial Planners were £17bn, representing a market share of 43.8%, according to the data published today by the Investment Association (IA).
Mixed asset funds saw the biggest net retail inflows in May.
Short Term Money Market was the bestselling IA sector with net retail inflows of £524m in May. The IA said investors are likely to be seeking to re-allocate this capital either tactically or once market conditions settle.
North America was the second highest selling sector at £444m, bucking the trend in equity outflows.
Responsible investment funds saw net retail inflows of £1.2bn in May, consistent with the £1.2bn recorded in April.
Chris Cummings, CEO of the Investment Association said: “Growing economic uncertainty and market volatility in May saw multi-asset funds rise in popularity as investors sought to diversify their portfolios, while responsible investment fund flows remained resilient. At the same time, equity funds saw outflows increase threefold in May.
“With the major central banks maintaining a clear trajectory towards curbing inflation through rate rises, the recent outflows from bond funds have slowed compared to earlier in the year. Higher rates may dampen economic growth and the market outlook remains uncertain. However, with inflation at a 40-year high, the general importance of investing for the long-term to prevent savings from losing their real-term value remains as true as ever.”
The worst-selling Investment Association sector in May was £ Corporate Bond, which experienced outflows of £1.8bn.
