Bonds were the biggest losers in 2013, as the out of favour asset class saw net outflows for the first time ever despite a surge in retail fund sales.
Equities were the main beneficiary, attracting £11.4 billion in net retail sales, the highest since 2000, while total funds under management reached a record £770 billion, a 16% increase from a year earlier.
Sentiment around fixed income has been affected by the threat that the US will taper its asset purchases, and by liquidity fears in emerging markets.
'Equity funds took by far the largest share of the net inflows from investors. After a number of years with the strongest net sales, fixed income took no new money in 2013. Both mixed asset and property funds saw stronger inflows than in 2012,' Daniel Godfrey (pictured), the IMA chief executive, said.
Fixed income saw small outflows of £17 million, following inflows of £5.6 billion in 2012.
On the equity side, global funds were the best-selling region for the sixth year in a row with inflows of £4 billion. The UK was second, experiencing a spike in popularity with £2.9 billion in sales after being the worst selling region in 2012, with an outflow of £944 million.