Finance
Investors snap nine-week buying streak in global equity funds
Published by Global Banking and Finance Review
Posted on November 28, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 28, 2025
2 min readLast updated: January 20, 2026
Global equity funds saw outflows after 10 weeks due to tech valuation concerns, while emerging markets attracted significant inflows.
(Reuters) -Global equity funds saw their first weekly outflow in 10 weeks in the week to November 26, as concerns about stretched valuations, particularly in the tech sector, outweighed optimism around expected U.S. interest rate cuts next month.
According to LSEG Lipper data, investors withdrew a net $4.48 billion from global equity funds as they registered their first weekly net sales since September 17.
In the most recent week, investors divested U.S. and European equity funds of $4.56 billion and $1.21 billion, respectively, but invested approximately $170.37 million in Asian equity funds.
Overall, global equities had a volatile November, with fears over stretched tech valuations and a record 43-day U.S. government shutdown weighing on sentiment.
"We continue to view AI as a market driver, but the sector will likely be assessed more selectively, and high valuations of many AI leaders carry disappointment risk," said Vincenzo Vedda, chief investment officer at asset management firm DWS Group.
"For this reason, we remain broadly diversified and see gold as a relative hedge."
Inflows in global bond funds, meanwhile, cooled to a 22-week low of $6.77 billion during the week.
Euro-denominated bond funds faced a net $3.58 billion outflow, the first weekly net sales since July 9. Short-term bond funds, however, gained $5.56 billion in a fourth successive week of net purchases.
Investors added $2.54 billion worth of money market funds as they ended a two-week selling trend.
Gold and precious metals commodity funds, meanwhile, stayed popular for a seventh straight week as these funds drew roughly $1.66 billion in weekly inflows.
In emerging markets, investors snapped up $3.34 billion worth of equity funds, the most since July 9. They also added a marginal $5.98 million worth of bond funds, data for a combined 28,793 funds showed.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru, Editing by William Maclean)
Equity refers to the ownership interest in a company, represented by shares of stock. It signifies the value of an owner's stake in the company after liabilities are deducted.
Valuations are assessments of the worth of an asset or a company, often based on financial metrics and market conditions. They help investors make informed decisions.
Investment portfolios are collections of financial assets such as stocks, bonds, and cash equivalents held by an investor. They are designed to meet specific investment goals.
Emerging markets are economies that are in the process of rapid growth and industrialization. They often present investment opportunities due to their potential for higher returns.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives. They are crucial for economic stability.
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