Finance
Global equity fund inflows cool to a five-week low on AI concerns
Published by Global Banking & Finance Review®
Posted on February 27, 2026
3 min readLast updated: February 27, 2026
Quick Summary
Global equity fund inflows slowed to $19.75B in the week ended Feb. 25, the weakest in five weeks, as investors grew more selective amid rising worries about AI spending, competition and disruption risk. The pullback coincided with a sharp post-earnings decline in Nvidia that helped pressure the tec
Global equity fund inflows cool to five-week low as AI worries grow
Fund flows snapshot: equities, bonds, money markets, and commodities
Equity fund inflows ease as AI unease builds
Feb 27 (Reuters) - Global equity fund inflows eased to a five-week low in the seven days to February 25 as investors turned cautious amid growing unease over the heavy costs and potential disruption linked to artificial intelligence.
Investors bought a net $19.75 billion worth of global equity funds, marking the smallest weekly inflow since $9.55 billion in the week to Jan. 21, LSEG Lipper data showed.
Market reaction: Nvidia and Nasdaq
Nvidia shares dropped 5.46% on Thursday, while the Nasdaq Composite Index shed 1.2% after Nvidia's earnings report showed that fourth-quarter revenue growth slowed, despite beating analysts' estimates.
Portfolio positioning: selectivity and diversification
"We believe big market moves in recent months should be a trigger to review portfolios," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
"Higher-than-expected capital expenditure and rising competition have raised uncertainty in the AI field, making selectivity and diversification more important."
Regional flows: Europe leads
European equity funds saw weekly inflows of $11.69 billion after a net $18.61 billion purchase in the prior week. Asian and U.S. funds drew net inflows of $3.22 billion and $2.01 billion, respectively.
Sector flows: industrials gain, financials and tech see outflows
Sectoral funds had a mixed set of data as industrials, and metals and mining secured net inflows of $1.5 billion and $1.02 billion, respectively, while financials and tech faced outflows of $2.55 billion and $257 million, respectively.
Bond and cash fund flows cool, with money markets steady
Inflows into bond funds, meanwhile, cooled to a five-week low of $12.68 billion.
The short-term bond funds segment received $1.25 billion, the smallest weekly net since January 21. Euro-denominated bond funds and corporate bond funds had inflows of $2.2 billion and $1.4 billion, respectively.
Money market funds saw the largest weekly net purchase in three weeks, at approximately $19.97 billion.
Commodities and emerging markets attract demand
Gold and precious metals see a surge
Gold and precious metals commodity funds saw a surge in demand in the most recent week as these funds drew $5.57 billion worth of inflows, the largest amount since October 22.
Emerging markets extend inflow streak
In emerging markets, equity funds remained popular for the 10th straight week as these funds drew net investments of $11.86 billion. Investors also pumped $3.13 billion into bond funds, data for a combined 28,718 funds showed.
(Reporting by Gaurav Dogra; with additional reporting by Patturaja Murugaboopathy in Bengaluru, Editing by Louise Heavens)
Key Takeaways
- •Risk appetite cooled: investors still added to global equity funds, but at a slower pace, signaling caution rather than a full “risk-off” turn as AI-related uncertainty rises.
- •AI “bellwether” volatility is driving broader sentiment: Nvidia fell about 5.5% on Feb. 26, 2026 despite beating expectations, underscoring that markets are increasingly reacting to durability of growth and AI capex payoffs—not just headline beats. (barrons.com)
- •Defensive and real-asset demand is resurfacing alongside equity caution, with strong interest in gold-linked vehicles recently highlighted by the World Gold Council amid heightened macro/geopolitical uncertainty. (investinglive.com)
References
Frequently Asked Questions about Global equity fund inflows cool to a five-week low on AI concerns
1How much did global equity funds take in during the week to Feb. 25?
Investors bought a net $19.75 billion worth of global equity funds, the smallest weekly inflow since the week to Jan. 21.
2What market moves followed Nvidia’s earnings report?
Nvidia shares fell 5.46% and the Nasdaq Composite Index dropped 1.2% after the report showed fourth-quarter revenue growth slowed, despite beating estimates.
3Which regions saw equity fund inflows, and by how much?
European equity funds saw inflows of $11.69 billion, while Asian funds took in $3.22 billion and U.S. funds drew $2.01 billion.
4How did sector funds perform in the latest week?
Industrials and metals and mining saw inflows of $1.5 billion and $1.02 billion, while financials and tech had outflows of $2.55 billion and $257 million.
5What happened to bond, money market, and gold/precious metals fund flows?
Bond fund inflows cooled to $12.68 billion, money market funds drew about $19.97 billion, and gold and precious metals commodity funds received $5.57 billion—the largest since Oct. 22.
