Global Equity Fund Inflows See Significant Slowdown Amid Market Volatility
Global equity fund inflows declined sharply to a three-week low as investors paused amid political instability. Despite resilient European demand, U.S. and Asian funds saw outflows. In contrast, global bond and money market fund inflows surged, while gold maintained strong investor interest. Emerging markets bond funds also experienced growth.
In the week leading up to October 8, global equity fund inflows dropped significantly as market conditions prompted investors to proceed with caution. Concerns over the French government's collapse and the U.S. government shutdown were among the factors contributing to this investment slowdown.
While European equity funds maintained a strong draw with a net inflow of $7.02 billion, funds in the U.S. and Asia witnessed outflows of $4.52 billion and $1.27 billion respectively. This highlights a shift in investor confidence towards more stable regions.
On the bond market front, inflows hit a near five-year high, with key allocations to short-term, euro-denominated, and corporate bond funds. Meanwhile, investment in precious metals continued its upward trajectory, marking sustained interest for 19 out of the last 20 weeks.
(With inputs from agencies.)
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