UK investors shrugged off faltering equity markets and the sagging bond market in April, adding a net £1.93bn to equity funds and £422m to fixed income funds. Meanwhile, mixed asset funds enjoyed their first month of inflows after eleven consecutive months of net selling.
Key highlights from this month's FFI:
- ISA season strongly influenced investor activity in April – it was a record ISA season, with inflows to equity funds 5x larger than 2023
- April equity fund inflows slowed compared to the first three months of the year, but remained very high
- Investors were choosy in what equity funds they invested in – Global, North America and European funds are in favour, while Emerging Markets and UK are out.
- Index funds are still driving much of the inflows
- Fixed income funds saw inflows despite falling markets
- Money market funds see outflows as investors opt to take on more risk