Data from the Investment Association shows UK investors withdrew £1.4bn in September 2023 - the largest outflow so far this year - as inflows into funds fell for the second quarter in a row.
The figures showed the highest outflows on record in responsible investments, with a huge £544mn of withdrawals.
Overall, the third quarter of 2023 closed with £1.2bn in net inflows.
This compared to £3.9bn in net inflows in the first quarter of this year, with quarter two dropping to £2.2bn.
The trade body found the best selling sector in September 2023 was UK gilts with net retail sales of £237mn followed by corporate bonds which saw sales of £209mn.
Chris Cummings, chief executive of the Investment Association, said: “Investors continue to be squeezed by inflationary pressures and the cost of living, as net inflows into funds experience their second quarter of decline.
"Despite £1.2bn invested in funds between July 1 and September 30, this is down on the first quarter of the year, which saw almost £4bn invested.
"UK Gilts continue to be a favourite throughout the uncertainty and was the best-selling sector in September, and an increased inflow into Mixed Asset funds was a bright spot in a challenging month.”
The previous batch of data from August showed UK savers put £354mn in the typically quiet month, largely driven by inflows into tracker funds.
tara.o'connor@ft.com
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