Second Wave Fears Keep Investors Cautious

Investors piled back into money market funds and fixed income options in May, Morningstar data reveals, amid persistent fears of a second wave of Covid-19 infections

Annalisa Esposito 18 June, 2020 | 12:18PM

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Investors sought safety in lower-risk funds as they poured £1.4 billion into their investments in May, latest Morningstar figures reveal. Fixed income and multi-asset funds were among the most popular in the month in a volte-face from the risk-on options investors piled into the previous month

Morningstar's monthly analysis of inflows into UK-domiciled funds shows investor funnelled £954 million into fixed income funds and £757 million into allocation funds. Global bond funds were particularly popular in May as the US Federal Reserve embarked upon more quantitative easing, explains Bhavik Parekh, associate analyst at Morningstar.

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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