Introduction

This guide explores the trends shaping fund flows in European equity markets, offers insights into investor sentiment, and evaluates factors influencing capital allocation.

What Are Equity Fund Flows?

Definition

Equity fund flows measure the net movement of capital into or out of equity funds over a period, serving as a barometer of investor confidence.

Current Landscape

Resurgence in Confidence

Modest equity inflows in H1 2024 suggest renewed optimism, driven by stable growth prospects in key European economies.

Sector & ESG Trends

Technology, renewable energy, and healthcare lead sector inflows, while ESG-aligned funds continue to attract substantial capital.

Key Drivers

Economic & Policy Indicators

Resilient PMI data and the ECB’s balanced monetary stance help stabilise markets amid uncertainty.

Global Dynamics

Geopolitical tensions, trade policies, and U.S. Federal Reserve moves influence European equity allocations.

Emerging Risks

Geopolitical instability, earnings uncertainty, and macroeconomic pressures in markets like China remain headwinds for inflows.

Why Monitor Fund Flows?

Tracking flows offers sentiment analysis, early warning on sector risks, and insights into geographical diversification.

Looking Ahead

Digitisation, clean energy investment, and healthcare transformation present opportunities, though challenges persist.