Emerging market equity funds also witnessed a surge in sales by 10% in Q4, while sales of cash funds hit their lowest volume since 2011 down 25% in the final quarter compared with Q3.
The figures were reported by Skandia, part of the Old Mutual Wealth Group, under its latest investment trends data report.
The platform said investor confidence appeared to have gathered pace in the final quarter of the year as the ECB took action, the FTSE 100 rallied and the US economy started to show signs of a turnaround.
Despite this, the fixed interest sector still accounted for the highest percentage of sales in the fourth quarter, responsible for nearly a quarter (23.75%) of all inflows through the platform during the period.
Elsewhere, commentators warned of being lulled into security by the current ‘risk-on’ phase.
“It could be derailed by another bout of bad news from the euro area, the US or dozens of other sources,” said Ian Stewart, Deloitte’s Chief Economist in the UK.
“Today’s rally has not so far been accompanied by an improving economic outlook. Global growth forecasts have fallen over the last six months and business confidence is weaker than financial market confidence. Stronger financial market risk appetite should be positive for economic activity. But it is not the sole or most important determinant of growth. And, as the last five years demonstrate, such rallies are vulnerable to setbacks.”
Inflows since the start of the year have shown no slowing of support for risk assets, however, with EM equity and bond funds absorbing $18bn in the first 16 days of 2013. In the equivalent period last year they took over $4bn, according to EPFR Global.
