A total of �956 million was paid into UK-based unit trusts and Oeics (open-ended investment companies) between March 1 and April 5, the highest level for the period since 2002, according to the Investment Management Association.
Around �349 million was paid into Isa versions of funds between April 1 and 5, as investors rushed to use up their tax-free savings allowance before the start of the new tax year, more than double the �152 million that was paid in during the same period of the previous year.
"This coincides with two increases to the annual allowance in October 2009 and April 2010 and compares starkly to Isa outflows of over �5 billion over the preceding five years."
A total of �1.9 billion was paid into all types of unit trusts and Oeics, not just Isa versions of the funds, during March, in line with the recent 12-month average.
The total value of funds under management, including money held for institutional investors, rose by 1pc during the month to �583.2 billion.
Alan Easter, a director of Willis Owen, the discount broker, said: "These figures show that Isas are clearly still valued by investors. Despite the squeeze on finances, more and more people are attracted by the tax-free wrapper that investment Isas offer, and the potential for growth, rather then leaving their savings sitting idly in a low interest bank account."
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