Global equity fund inflows ease on caution over political risks, U.S. shutdown
Global equity fund inflows ease on caution over political risks, U.S. shutdown
Published by Global Banking and Finance Review
Posted on October 10, 2025
Published by Global Banking and Finance Review
Posted on October 10, 2025
(Reuters) -Global equity fund inflows cooled to a three-week-low in the week to October 8 as investors took a breather after the recent market rally amid risks surrounding the collapse of the French government and the ongoing government shutdown in the United States.
Investors bought just $2.03 billion worth of global equity funds during the week, nearly a 96% reduction from about $48.81 billion weekly net purchases the prior week, LSEG Lipper data showed.
Resilient demand for European equity funds, which drew a net $7.02 billion in the latest week, kept global flows positive even as U.S. and Asian funds saw outflows of $4.52 billion and $1.27 billion, respectively.
The tech, industrial and healthcare sectors saw strong buying interest as these sectors received a net $2.03 billion, $1.25 billion and $1.23 billion, respectively in inflows.
In contrast, investors divested financial sector funds of a net $1.3 billion, halting a three-week trend of net purchases.
Weekly inflows into global bond funds, meanwhile, jumped to nearly a five-year-high of $25.81 billion during the week.
Short-term bond funds, euro-denominated bond funds and corporate bond funds received approximately $5 billion each in inflows in the week. Government bond funds also saw a net $1.21 billion worth of net purchases.
Global money market funds drew a net $64.45 billion weekly investment, the highest amount for a week since August 6.
Among commodities, investors snapped up gold and precious metals commodity funds of $1.34 billion, logging their 19th weekly net purchase in 20 weeks.
In the emerging markets, investors pumped $2.38 billion into bond funds, the largest amount for a week since July 9. Equity funds saw approximately $484 million weekly net investments, data for a combined 28,423 funds showed.
(Reporting by Gaurav Dogra; Editing by Tasim Zahid)
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