Mutual fund net sales for August are expected to come in between $1.5 billion and $2 billion, according to early data from the Investment Funds Institute of Canada.

IFIC reported Friday that, based on a sample of preliminary data from some of its members, net new sales for August are estimated to be between $1.5 billion to $2.0 billion. This would be the best August for mutual funds since 1997.

“The industry’s net sales for the first eight months of 2005 are the highest since the same time period in 2001,” said Tom Hockin, IFIC’s president & CEO.

The banks continue to lead the way, with RBC Asset Management Inc. posting $421 million in net sales, followed by BMO Funds at $297 million and TD Asset Management Inc. at $258 million.

No other firm is reporting as much as $200 million in August net sales. Indeed, only a handful have more than $100 million in monthly net sales: PH&N ($174 million); CI Investments ($157 million); Manulife Investments ($113 million); Dynamic Mutual Funds ($110 million); and Acuity Funds Ltd. ($108 million).

Several firms continue to report net redemptions, including AIC ($199 million), AIM Trimark Investments ($42 million), Fidelity Investments, Altamira Investment Services Inc. and Scotia Securities. However, Scotia had slightly positive long-term net sales.

IFIC also estimates that net assets of the industry at the end of August will be in the range of $546 billion to $551 billion, up approximately 0.7% from last month’s total of $544.5 billion.