Investors placed £530 million into UK funds in November, the strongest month since May 2025, according to data published by the UK’s Investment Association (IA) today.
November’s inflows are a marked improvement on 13 months previously, which saw substantial outflows of £5.7 billion in October 2024. This suggests concerns around potential tax changes including restrictions to pension tax free lump sums in the budget had subsided.
Investors’ risk-off sentiment continues however with consistent outflows across equities, as withdrawals totalled £2.9 billion. Domestically, funds investing in UK equities recorded the smallest outflows since May 2025 at -£453 million against the backdrop of the FTSE 100 Index closing 2025 with a jump of 26%. There was a rare inflow into active UK equity funds of £52 million.
Key findings for November 2025
- Equity outflows slowed to £2.9 billion in November, a significant fall from the £5.0 billion in withdrawals seen in October. All regions once again saw redemptions, with Global (-£953 million) and North America (-£596 million) bearing the brunt. .
- Fixed income returned to inflows of £1.1 billion after a flat £62 million outflow in October. Mixed Bond (£360 million), £ Strategic Bond (£262 million) and UK Gilts (£117 million) saw the biggest inflows in November, with UK Gilts reversing three consecutive months of outflow.
- Global Emerging Markets Bond – Local Currency continued its seven-month streak of inflows with £100 million in November.
- Money market funds saw strong inflows of £1.4 billion, with Short Term Money Market being the best-selling IA sector in November (£1.3 billion).
- Mixed asset funds saw total inflows of £659 million in November, their biggest monthly inflow since April 2025.
- Tracker funds saw relatively low inflows of £233 million, while active funds recorded their highest inflow in six months at £297 million.
Miranda Seath, Director, Market Insight & Fund Sectors at the Investment Association, said: “November’s data signals a notable shift in investor sentiment, with funds returning to inflows for the first time in six months, as anticipation ahead of the Autumn Budget helped investors to piece together the likely tax changes ahead of November 26th. The data suggests that investor fears over pension changes receded in November, while the high inflow to short-term money market funds indicates expectations from retail investors that the cash ISA limit would be reduced.”
