Investors Favour Equity Funds

Equity funds outsold bonds for the eighth consecutive month in November, with sales equalling nearly £1billion. But the majority of investors’ cash still lies in fixed income

Emma Wall 10 January, 2014 | 10:57AM
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Investors poured cash into equity funds in November – making it the eighth consecutive month as the best-selling asset class. Sales of equity funds equalled £935 million, making up a considerable proportion of the total £1.6 billion that flowed into all funds that month.

According to the latest figures from the Investment Management Association, investors took £112 million out of bond funds in November, compared to inflows of £62 million the previous month.

This marks a stark contrast to investor sentiment just 18 months ago. Until September 2012, bonds topped the best-selling asset class in the UK, with investors globally depositing $1.3 trillion into fixed income during the downturn. And for all the talk of a great rotation - the concept that investors are moving up the risk scale from bonds to stocks in order to secure a higher yield – fixed income still holds the majority of that cash.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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