Revealed: The funds investors bought as markets tumbled

Advisers have rushed to income-generating funds amid recent market turbulence, according to FundsNetwork sales figures.

The Fidelity Cash fund was top of the sales chart for the week 15-19 August, with Invesco Perpetual High Income, Jupiter Merlin Income Portfolio and M&G Optimal Income also featuring in the ten best selling funds.

"What is apparent is in these turbulent times, advised investors are seeking income over growth," said Fidelity head of commercial Ed Dymott (pictured).

"Inflation figures, low interest rates and uncertain growth projections have led investors to seek income generating funds."

However amid the dash to cash, advisers remain divided between those seeking safe haven assets and those viewing recent stock market volatility as the perfect buying opportunity.

Indeed, the most popular origin of switches was virtually the same as the most sought-after destinations.

UK Money Market, UK All Companies, Global Growth and Cautious Managed were, in descending order, both the top five switching origins and switching destinations on the platform.

As advisers appear split, Fidelity emphasised the importance of looking beyond the short-term.

"The view from our investment managers is many see the market volatility provides good opportunities for many markets which will provide benefits for investors in the medium term," added Dymott.

Meanwhile, UK All Companies was the best-selling sector in the week, followed by Asia Pacific ex Japan, suggesting advisers are steering clear of Europe amid the region's ongoing debt crisis.

The Europe ex UK featured in the top five switching origins.

Top ten best selling funds via advisers on FundsNetwork (new lump sum investments and switches into ISA, SIPP, PEP and unwrapped products)

1 Fidelity Cash Fund
2 Invesco Perpetual High Income Fund
3 Fidelity South East Asia Fund
4 M&G Recovery Fund
5 Fid FIF MoneyBuilder Income Fund
6 Jupiter Merlin Income Portfolio Fund
7 Invesco Perpetual Distribution Fund
8 M&G Optimal Income Fund
9 Invesco Perpetual Monthly Income Plus Fund
10 Fidelity Strategic Bond Fund

Top Five Switching Origins

1 UK Money Market
2 UK All Companies
3 Global Growth
4 Cautious Managed
5 Europe Excluding UK

Top Five Switching Destinations

1 UK Money Market
2 UK All Companies
3 Global Growth
4 Cautious Managed
5 Specialist