The Global Bond sector reached its highest ever monthly sales figure in July, according to the Investment Management Association.
It saw net retail sales of £361m, the highest selling month on record.
Underscoring the continued demand for fixed income products, three out of the top five best sellers were bond sectors.
In second place was £ Corporate Bond, up from eighth position in June, while £ Strategic Bond was fourth.
Strong sales into these sectors made bonds the leading asset class in July, with net retail sales of £928m, up £349m on the previous month.
Equities was the second highest selling asset class at £857m.
Meanwhile, the other two sectors to feature in the top five in July were Global Growth and Absolute Return.
Overall, net retail sales for July reached £2.2bn, up £100,000 on June. The figure has been above £2bn for 13 out of the last 16 months.
Meanwhile, funds under management were at £509.2bn, up 4% since June.
Net Isa sales for July totalled £267m, in line with average monthly sales of £288m over the past year, excluding the Isa season of March and April.
Elsewhere, platforms saw funds under management reach £92.6bn, their highest level since figures began in January 2008. However platform gross sales for the month were down £200,000 from June to £2.9bn.
Finally, overseas domiciled funds register their biggest monthly sales since figures were first recorded in July 2006 of £385m.
Jane Lowe, the IMA's director of markets, says: "Investor appetite for bonds was buoyant in July, with global bonds sales the highest on record.
"Although the first wave of investment in 2009 was heavily concentrated in UK bonds, we are now seeing a second wave of investment that is well diversified across UK and global fixed income."
