UK equity income funds enjoyed record net sales of £500 million last month as the quest for yield shows no signs of abating.

Net fund sales overall reached £2.9 billion, the highest in four years. Within that, equity was the best selling asset class, bringing in £1.4 billion. By contrast, fixed income net sales were just £270 million, below property and mixed asset inflows.

'Fund sales were just shy of the £3 billion mark in April with £1.3 billion coming from investors making the most of their tax-free ISA allowances by rushing to meet the end of tax year deadline or topping up at the start of the new one,'  Daniel Godfrey (pictured), IMA chief executive, said

'The IMA UK Equity Income Sector was the best-selling sector for both ISAs and funds overall. However investors also channelled money into mixed asset and property funds – property in particular has been seeing consistent growth in sales over the last year.'

Total UK investment funds reached £788 billion with UK equity funds the biggest winners, becoming the best selling region for the sixth month in a row, followed by Global and European equity funds. ISAs saw net retail sales of £1.3 billion.