Investor Confidence Returns

Increased investor confidence in equity funds over the last few months has been evidenced by a leading Index¹, with UK investors at their most bullish in almost three years.

Equity fund inflows reached £2.01bn in January, one of the top ten months on record and the highest since April 2021. In addition, the January Index reported:

• US equity funds had record inflows of £1.04bn
• European equity funds had their third best month on record with an inflow of £471m
• Weak news from China meant outflows from Asia Pacific funds for a ninth consecutive month
• ESG funds had record inflows of £1.63bn. It’s likely to be too soon to identify this as a trend after months of negativity
• Inflows to safe-haven money market funds slowed to a trickle (£56m) after months of strong buying.

¹Calastone, 2024

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.