Vaccine news drives huge inflows to equity funds as investor appetite for risk soars______

The announcement of three safe, effective vaccines against Covid-19 spurred a near-record flood of new capital into equity funds in November, according to the latest Fund Flow Index from Calastone, the largest global funds network. Investors added a net £2.3bn to equity funds, the second highest month of inflows on record after April 2020 , when global markets reacted euphorically to the vast economic and financial support packages from governments and central banks.

Key highlights from this month’s FFI:

  • November saw second-highest inflow to equity funds on record totalling £2.3bn
  • Daily trading data shows how inflows followed vaccine news
  • US election caused modest outflows
  • Active funds had their best month in half a decade, with record inflows to active global funds
  • ESG equity funds also saw record inflows, with November exceeding total inflows during the five years to January 2020
  • Investor appetite for increased risk drove record redemptions from money market funds

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