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Australian investors pump billions into equity funds as hopes rise for an end to the pandemic

Fund Flow Index - April 2021

Since the shock global stock market crash that accompanied the economic stoppages sweeping the world in March 2020, investors have poured money into equity funds. Inflows peaked in November and December on the back of vaccine euphoria. And although a third wave of infection in the northern hemisphere took some of the shine off inflows in January, evidence that the most advanced vaccine rollouts are successfully quelling the epidemic in countries like Israel, the UK and US, has since driven rising volumes of inflows to equity funds in Australia and elsewhere.

Key highlights from this quarter's FFI:

  • Equity funds enjoyed $9.5bn inflows in the last 12 months, $3.0bn in the last quarter, and half of that in March
  • Buyers have favoured global and Australian equity funds most
  • They have shunned equity income funds in the wake of global dividend cuts, and European equities 
  • Calastone Fund Flow Index shows that buying is outweighing selling 1.5:1 
  • ​​​​​Very high volumes of trading in recent months indicate significant switching between funds