UK funds were up £4.8bn in April with inflows into active funds almost matching their passive counterparts, latest data from Morningstar shows.
Morningstar found investor sentiment was "vastly improved" compared to March when the coronavirus lockdown began. The £4.8bn increase excluded money market funds, according to Morningstar's monthly UK fund flows data.
Flows in April were driven by a £4.9bn net inflow into equity funds, with passive UK and US strategies proving popular.
Fixed-income funds reported a very small net inflow in April which followed a record net outflow in March.
Alternative funds remained unpopular last month and saw net outflows of £852m. April was the thirtieth consecutive month for alternatives outflows.
BlackRock and Vanguard recorded high net inflows into their passive vehicles totalling £1.7bn between the two. Active houses Baillie Gifford and Fidelity also saw strong investor interest in April.
Invesco continued to see high net outflows in April (£766m) bringing the total net outflow over the past 12 months to £10.5bn.
Associate analyst, manager research Bhavik Parekh said: "In recent months, inflows have been driven by passive vehicles at the cost of actives ones, however in April, both passive and active vehicles saw net inflows split roughly 50/50.
"The end of March and the whole of April saw equity markets rising, especially in the US which saw one of its best months in many decades."
He added: "This sharp and sustained change in direction gave some investors' confidence that the bottom had been reached and they invested heavily in risker assets."