European investment funds closed 2025 on a strong note, with bond and equity funds leading inflows during the final quarter of the year, according to the latest data from European Fund and Asset Management Association (Efama).
In the fourth quarter of 2025, trade body Efama, reported that the net assets of Ucits (EU regulated investment funds) and Alternative Investment Funds (AIFs) rose by 2.8%.
Ucits and AIFs attracted €233bn in net inflows overall, with Ucits accounting for €197bn and AIFs bringing in €36bn.
Long-term funds dominated flows, recording €216bn in net inflows. Bond funds led the category with €87bn, followed by multi-asset funds with €64bn and equity funds with €54bn.
Money market funds, however, saw net sales fall to €17bn, down from €39bn in the third quarter.
Long-term Article 9 funds under the Sustainable Finance Disclosure Regulation recorded their ninth consecutive quarter of net outflows, totalling €6.6bn. By contrast, long-term Article 8 funds attracted €70.1bn in new money.
Efama also reported that European households recorded net acquisitions of investment funds totalling €66bn in the third quarter of 2025.
Full-year figures for 2025 show that Ucitssets increased by 9.7% to €16.7tn. Net sales of Ucits reached €819bn over the year, with equity Ucits recording €241bn and bond Ucits €308bn in net inflows. Multi-asset Ucits also returned to positive territory, with net sales of €70bn.
Money market Ucits attracted €143bn in net inflows during the year.
Assets held in AIFs increased by 4.1% to €8.5tn. Net sales of AIFs reached €69bn overall, with multi-asset AIFs bringing in €53bn and other AIFs €31bn, while equity AIFs experienced net outflows of €34bn.
Ella Vacic, junior data analyst at Efama, said: “All fund categories experienced net inflows in Q4 2025, with continued strong demand for long-term funds. This investor confidence was driven by broad-based equity gains, particularly in Europe, and continued interest rate cuts.”
