Net sales of UK retail funds surged by 42% to £20.4 billion in 2013, according to the Investment Management Association, as investors regained confidence in the stock market.

Equity funds saw their highest sales since 2000 with inflows of £11.4 billion - triple the £3.7 billion gained in 2012 - as investors pulled a marginal £17 million away from bonds, against inflows of £5.6 billion in 2013.