European investment funds delivered a record year in 2025, with net inflows at €873bn and total assets surpassing €25trn for the first time, according to the European Fund and Asset Management Association’s (Efama) data.
Ucits ( the EU’s regulated cross-border investment vehicles) accounted for the majority of new money, attracting €828bn in net sales over the year, surpassing the previous peak of €813 billion set in 2021. Net assets across European investment funds rose 7.4% year-on-year to €25.2tn.
Equity and bond strategies dominated flows, with ETFs continuing to capture an increasing share of investor demand.
Equity Ucits recorded €247bn in net inflows in 2025, up from €147bn in 2024. Investor preference for passive vehicles remained strong: equity ETFs gathered a record €261bn in net new money, while non-ETF equity funds lost €14bn.
Bond Ucits retained their position as the best-selling category overall, according to Efama, benefiting from continued rate cuts by major central banks. Net inflows reached €304bn in 2025, up from €275bn the previous year, though still below the €313bn peak seen in 2017. Unlike equities, most bond inflows went into non-ETF products, which attracted €239bn, compared with €64bn for bond ETFs.
Multi-asset Ucits returned to favour after two years of redemptions, recording €79bn in net inflows compared with €40bn of outflows in 2024. The turnaround suggests renewed appetite among investors seeking diversification across asset classes amid ongoing geopolitical and market uncertainty, Efama highlighted.
After inflows of €226bn in 2024, money market funds (MMFs) gathered a further €143bn in 2025. Although yield curves normalised during the year, investors continued to use MMFs as a cash alternative and safe haven.
Net Ucits ETF sales climbed to €347bn in 2025, exceeding the record of €269bn set in 2024.
By contrast, alternative investment funds (AIFs) gained €45bn, down from €55bn in 2024. Multi-asset AIFs led with €53bn in net sales, while equity AIFs recorded €44bn in outflows, partly reflecting Dutch pension funds transitioning from AIF structures to segregated mandates, shared Efama.
In December alone, Ucits and AIFs saw combined net inflows of €81bn, up from €66bn in November. Long-term Ucits attracted €73bn, including €30bn into ETF Ucits.
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Thomas Tilley, senior economist at Efama, said: “With over EUR 800 billion in net sales, 2025 marked a record-breaking year for Ucits. Net inflows were robust across all main categories, with bond and equity funds accounting for the bulk. The rush into ETFs showed no signs of abating as these funds posted their third consecutive year of record-high net sales. At the same time, strong inflows into money market funds indicate that some investors adopted a more cautious stance during a year of geopolitical uncertainty and currency volatility.”
Tanguy van de Werve, director general at Efama, said: “The strong inflows into Ucits in 2025 demonstrate the continued success and resilience of the Ucits regulatory framework. Investors’ confidence in Ucits highlights the effectiveness of its robust governance, risk management, and investor protection standards. These results underscore the importance of preserving the stability of the framework and avoiding unnecessary regulatory changes that could disrupt an ecosystem that is clearly delivering for both investors and markets.”
Hailin Yang, senior data analyst at Efama, added: “Net sales of long-term Ucits remained strong in December 2025, as financial markets generally ended the year on a high note.”
