As 2024 has progressed, investor confidence continues to show resilience, especially in equity markets.
A leading index¹ highlighted earlier in the year that UK investors reached their most bullish levels in almost three years, and this optimism has largely held steady throughout the months that followed.
Equity market fund inflows hit a notable high in January, reaching £2.01bn, marking one of the top ten months on record and the strongest since April 2021.
In addition, the January Index reported:
- US equity market funds had record inflows of £1.04bn
- European equity market funds had their third best month on record with an inflow of £471m
- Weak news from China meant outflows from Asia Pacific funds for a ninth consecutive month
- ESG funds had record inflows of £1.63bn. It’s likely to be too soon to identify this as a trend after months of negativity.
- Inflows to safe-haven money market funds slowed to a trickle (£56m) after months of strong buying.
What’s next for investors and the equity market funds?
As we move into the latter part of the year, the initial optimism observed in equity market funds seems to have been largely sustained, but uncertainties remain in certain regions, particularly Asia-Pacific. For investors, maintaining a diversified portfolio remains crucial, especially given the potential for continued market volatility.
Get in touch
With the final months of the year approaching, now is an ideal time to review your investment strategy. Whether you’re looking to take advantage of the positive trends in equity funds or explore opportunities, our team is here to provide expert guidance.
We regularly support clients across the South East, including Eastbourne, Brighton, Tunbridge Wells, Hastings, Bexhill, Lewes, Uckfield, and the surrounding areas. Feel free to contact us to discuss how we can help align your investments with your financial goals.
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¹Calastone, 2024
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
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