The surge of interest in unit trusts over the last two and a half years has mostly been in trusts investing in the UK.

Association of Unit Trusts and Investment Funds' figures show that the most popular area in that period has been UK equity income sector funds with total sales between January 1992 and July 1994 of u3.4 billion. This was followed by the UK growth funds with u2.5 billion invested and UK general funds with u2.4 billion.

Retail sales for July 1994 again shows the two top sectors as UK equity income trusts and UK growth trusts with u127.8 million and u104 million respectively invested, with international growth trusts in third place with sales of u116.9 million.

Most unit trust providers and intermediaries predict that japan is the next big investment area ready for take off with investors. Europe and Japan were the last areas to come out of recession, but Japan has the greater scope for recovery.