Net inflows into European Ucits, funds designed to be marketed to retail investors, in the third quarter were more than double the previous three months as investors put money back into equities.

The European Fund and Asset Management Association said in its latest Quarterly Statistical Release that net inflows into Ucits totalled €34bn in the third quarter of this year, up from €12bn in the preceding three months.

The report said: “This increase in net sales can be attributed to the upturn in net sales of equity funds and decreased net outflows from money market funds.”

Bond funds suffered net outflows of €12bn, the first net quarterly since 2011, due to expectations that the US Federal Reserve will begin tapering its quantitative easing programme.

In contrast the economic data was positive for equities and equity Ucits had inflows of €30bn in the third quarter, a reversal of the net outflows of €9bn in the second quarter.

During the third quarter 19 countries had net inflows into Ucits with four countries attracting assets of more than €5bn.

Luxembourg had the largest net inflows of €13bn in the third quarter, followed by Ireland with €12bn, Spain at €6bn and then the United Kingdom with €5bn.

Total Ucits net assets increased 3% to €6,690bn during the third quarter of this year.

Equity funds had the strongest net asset growth of 7.8% to grow to €2,399bn at the end of the third quarter. In contrast, money market fund net assets fell by 1% to €935bn.

At the end of September 2013 the number of Ucits  was 35,610, up from 35,370 at the end of December 2012.