You are here: Home - Investing - Experienced Investor - News -

Investors pumped record amounts into equity funds in April as markets rallied

0
Written by:
06/05/2020
Investors flocked back to equity funds in April as stock markets rebounded after sharp falls in February and March.

A record £2.6bn flowed into funds during the month, following two months of money leaving the sector as the Covid-19 pandemic ravaged the global economy and shattered market confidence month, according to fund technology firm, Calastone.

Most of the buying took place in the middle of the month as evidence began to emerge that the outbreak was beginning to slow down in some of the worst-hit European countries. By the end of the month, inflows slowed to a trickle, Calastone said.

Global funds took in the most new money, adding a total of £1.1bn, easily the best month on record for the sector.

Funds focused on UK equities were close behind, adding £1bn, the second-best month ever seen for these funds.

Asian funds enjoyed their first inflows since November, while outflows from European funds slowed to their second lowest level since the end of 2018.

Fixed income funds enjoyed a better month after an unprecedented £3.6bn of outflows in March. In total, these funds took in £461m of investor money in April.

Edward Glyn, head of global markets at Calastone, said: “Fear receded in April and capital flooded back into funds in its wake. As markets began to rise sharply, investors scrambled to add to their fund holdings, eager not to miss the best month for markets in 40 years.

“Greater caution set in later in month, perhaps because investors began to question how solid the foundations of the rally could be given the mounting evidence of severe economic damage around the world, as well as White House sabre-rattling over new tariffs on China.

“Bear markets are often punctuated by brief moments of euphoria that see share prices inflate rapidly. But just as it is easier to puncture a balloon than knock down a wall, bear market rallies often deflate just as quickly as they occur.

“We don’t pretend to know which way share prices are going, but the slowdown in inflows suggests the uptick may at best be on pause for now.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Nearly 70,000 Bounce Back loans worth £2bn approved on day one of scheme

More than 69,000 ‘Bounce Back’ loans aimed at helping small businesses survive the coronavirus crisis were approved on the scheme’s...

Close