The end of the tax year prompted the usual surge in sales of investment funds held within Individual Savings Accounts (ISAs), new figures have shown.

Gross sales reached £1.3bn in April, their highest level for a year, but still below the £1.5bn sales figure of April 2001.

The first five days of April alone saw sales of £602m, as investors rushed to put money into ISAs before the end of the tax year.

Money held within ISAs is exempt from income tax and capital gains tax.

The Investment Management Association (IMA), who produced the figures, said more people were making their own mind up about where to put their money.

"Investors appear increasingly confident of making their own investment decisions, with a higher proportion buying investment fund ISAs direct," said the IMA's Clare Arber.

"It is unclear how much of this is a result of the last minute ISA rush, when investors had little time to take advice, or a general trend.

"Armed with the information available, it's important that investors remember to construct a diversified portfolio that meets their investment objectives and time horizons. Furthermore, they need to understand the levels of risk involved."