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

13 Jul 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[1]. 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

View this edition of the FFI in full

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