Retail investors reversed recent pre-Budget trends as fund sales recorded inflows of £1.2bn in September, according to the latest data from the fund managers’ trade body the Investment Association (IA).
The inflows mark an eleventh consecutive month of retail fund inflows.
September’s inflows contrasted with the past two years when greater speculation about potential policy changes coincided with outflows during the month preceding the Budgets. Outflows were £3.9bn in September 2024 and £4.6bn in October 2025.
The IA said flows were supported by limited speculation about this year’s Budget, together with signals of major policy announcements coming later in the 10-year plan and Spending Review.
Net retail flows in the lead up to UK Budgets: August 2024 – September 2026
Source: Investment Association (IA)
While inflows continued in September, sales did slow quarter on quarter, with total inflows of £2.6bn in Q3, compared with £7.8bn and £4.5bn in the second and first quarters of the year.
Investors continued to favour defensive and diversified options in September with a preference for fixed income, money market, and mixed asset investments.
Short Term Money Markets was the best-selling sector of the month at £1.0bn of inflows, driven by higher energy prices and expectations of further rate rises.
Mixed asset funds also stayed in inflow at £374m, bringing Q3 sales to £1.9bn, slower than earlier in the year where sales reached £4.7bn in the second quarter.
All equity regions saw outflows in September, due to market uncertainty.
Global equity funds saw the most pronounced withdrawals at £675m, a sharp reversal from inflows of £566m in August.
North American funds recorded outflows of £350m, in line with August, while outflows from Asia funds accelerated to £492m, the highest monthly figure since June.
Miranda Seath, director, market insight & fund sectors at the Investment Association, said: “Investors stayed the course in September. Less speculation ahead of this year's Budget helped fund flows hold up despite a challenging backdrop of conflict in the Middle East and rising inflation.
"With the Budget now behind us, the focus must shift to supporting people to save and invest for the long-term. One in three UK adults feel worse off than they did 12 months ago, and one in four don't expect to have money left to save or invest after day-to-day costs. Many are turning to cash for security, yet a third don't recognise how inflation erodes the value of their savings.”
The five best-selling Investment Association sectors for September 2026 were:
- Short Term Money Market saw net retail inflows of £1.0bn
- Volatility Managed saw net retail inflows of £269.8m
- Mixed Bond saw net retail inflows of £201.5m
- Global Emerging Markets saw net retail inflows of £191.9m
- Global Inflation Linked Bond saw net retail inflows of £140.1m
The worst-selling Investment Association sector in September 2026 was Specialist which experienced outflows of £507.0m.