Please fill in the form to view this edition of the Fund Flow Index

Record inflows to equity funds in Q2 2021, though investors are starting to show signs of nervousness

Fund Flow Index - July 2021

Equity funds collectively experienced a record quarter of inflows in Q2 2021. Between April and June, investors committed a net £6.2bn of new capital to equity funds of all kinds, easily beating the record set in Q3 of 2015. The first half of 2021 is also a record (£10.1bn inflow).

Key highlights from this month's FFI:

  • Q2 saw record inflows to equity funds – a net £6.2bn
  • The last 12 months have seen inflows of £15.0bn, easily a record for any 12-month period
  • June however saw a cooling in appetite to add more cash to funds
  • Third-wave fears prompted outflows from UK-focused funds and lower buying of other categories of equity funds
  • ESG funds stood out with rising inflows – they have accounted for 50% of net inflows to all equity funds year-to-date
  • Record household savings mean the funds industry overall has seen the biggest inflows since 2018