Net inflows into European mutual funds in September were little more than a sixth of their level the previous month.
The fall in net inflows to €3.2 billion, down from €18.5 billion in August, was described as a “massive slowdown” by analysts at data firm Lipper, which produced the findings.
The September data is even more startling when compared to July, when investors pumped a net €41 billion into European funds.
Mixed-asset products were the most popular category in September, with a smaller inflow into bond products. Net money flowed out of equity funds, alternative funds and commodity funds. The largest outflow came from money market funds.
The slowdown in fund flows is a marked contrast to the rest of this year, which has seen consistently high inflows into European funds.
Looking ahead to October, Lipper analysts say bond funds are likely to be the most popular asset class, with a net inflow estimated to be €4.8 billion.
“Even though these numbers are estimates, it seems bond funds continue to be the best selling asset type in Europe, while mixed-asset products are coming increasingly into investors’ favour,” says the Lipper report.
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