Almost £1 billion (€1.27 billion) was invested by private investors in investment funds in Ireland during the first half of 1999, almost double that invested in the same period last year, according to a six-month survey by the Irish Association of Investment Managers (IAIM). This makes investment funds the fastest-growing segment of the Irish savings market.

Unit-linked and with-profits funds were the strongest growth areas over the first six months to June 1999. Net flows into unit-linked funds amounted to £332 million (up 153 per cent) and £229 million for with-profit funds (up 193 per cent). Net flows into unit trusts/UCITS increased by 50 per cent.

The continued growth in the personal investment market has been driven by falling interest rates, increasing disposable income and a recognition that investment funds offer a range of advantages to investors, including strong returns, diversification and tax simplicity, said IAIM.