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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
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 10, 2025
2 min readLast updated: January 21, 2026
Global equity fund inflows fell due to political risks and U.S. shutdown, with European funds remaining resilient and bond funds seeing high inflows.
(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)
An equity fund is a type of mutual fund that invests primarily in stocks or shares of companies. It aims to provide capital appreciation over time through the growth of the underlying investments.
Bond funds are investment funds that invest in bonds or other debt securities. They provide investors with regular income through interest payments and are generally considered less risky than equity funds.
Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. They often offer higher potential returns but also come with increased risks.
Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold. They facilitate the raising of capital by connecting investors with companies.
An investment portfolio is a collection of financial assets such as stocks, bonds, commodities, and cash equivalents, held by an individual or institution to achieve specific financial goals.
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