A 5.4 per cent surge in gross sales of absolute return funds shows that they remain a popular choice for investors, says Defaqto.

The research company found that absolute return funds accounted for 7.1 per cent of gross sales of funds in the UK in April 2010, a jump from April 2009’s 2.7 per cent and April 2008’s returns of 1.7 per cent.

“Absolute return funds have been thought of as a very useful investment tool in times of economic uncertainty and market volatility, and as such it is no surprise that interest in these funds has grown considerably since the credit crunch in 2008,” said Fraser Donaldson, author of the guide and Defaqto's insight analyst for funds.

“More unusually, these funds have continued to be popular even through the market recovery in 2009. According to the Investment Management Association, over seven per cent of gross sales in April 2010 were into funds in the absolute returns sector. This indicates that they are now being seen as a ‘fund for all seasons’, and are being used as core funds for many investors.”

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