Private investors put £827 million (€1.05 billion) into lump sum investment funds in Ireland during the first six months of 1999, according to a survey from the Irish Association of Investment Managers. That represented a 73 per cent increase on the same period in 1998.

Continued growth in the personal investment market has been driven by falling interest rates, more disposable income and a recognition that investment funds offer a range of advantages to investors, according to IAIM.

Mr Noel Minogue, chairman of IAIM's retail funds committee, said investment funds were now the choice for the personal investor and the surplus money invested offered growth opportunities. IAIM noted the Irish personal investment market was heading in the same direction as the US mutual funds market.

Unit linked funds and with-profits funds have been the strongest growth areas over the first six months.

Net flows of lump sums into unit-linked funds increased by 153 per cent to £332 million.