Investors Turn Cautious in July

Morningstar's latest fund flow figures show investors searching for safety in July, but the attraction of US growth stocks continues to inspire those willing to take on risk

Annalisa Esposito 18 August, 2020 | 9:27AM

Piggy Bank

With coronavirus cases increasing once more and fears of a second wave intensifying, investors turned towards less risky assets in July. While investors poured £2.4 billion into funds in the month (excluding money markets), most of the money was funnelled into more cautious choices such as fixed income and allocation funds. 

Fixed income funds, in particular, attracted some £1.9 billion of new money in July with sterling and global sterling-hedged bond funds among the most favoured choices of investors. Morningstar analyst Bhavik Parekh points out the average corporate bond fund has returned 5% since the beginning of the year to July end, “far better than the average for an equivalent UK equity category,” he says.

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About Author

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

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