INVESTORS' confidence in the stock market continued to grow last month, with investment trust sales soaring by 42 per cent, figures showed.

Net sales of unit trusts and OEICs (open-ended investment companies) reached £716.7m during February, well up on the previous month's £505.1m.

The increase was even more dramatic when compared with figures for February last year, with sales last month 314 per cent higher than a year earlier.

Sales received a slight boost from people taking out ISAs before the start of the new tax year, with net sales reaching £209.5m, 14 per cent higher than during January.

Total sales to consumers, including people cashing in their investment or moving it elsewhere, reached £2.5bn during February, 11 per cent higher than in January, and 44 per cent above the same month last year.

Richard Saunders, chief executive of IMA, said: "Investment fund sales continue to show encouraging progress since last year's low point.

"With net inflows across all asset classes, investors' confidence appears to be slowly returning."

At the same time, total funds under management, which includes money invested by institutions, increased for the fifth month in succession to £246bn, nearly a third higher than during the same month of 2003.

IMA represents 99 per cent of investment funds under management through unit trusts and OEICs.