Global equity funds see strong inflows in final week of 2025

Global equity funds saw strong inflows in the final week of 2025 as optimism over AI-driven market gains over the past year and a solid corporate earnings outlook lifted risk appetite, reports Reuters.
According to LSEG Lipper data, global equity funds attracted $26.54 billion of net inflows during the week, following about $37.05 billion of net purchases the previous week.
The MSCI World Index rose 20.6 per cent in 2025, its strongest annual performance since a 24.05 per cent gain in 2019.
Analysts expect corporate earnings to grow 12.11 per cent in 2026, in line with the 12.32 per cent growth forecast for 2025, according to LSEG data covering 11,811 large- and mid-cap companies
Including the most recent week's purchases, global equity funds recorded about $239.76 billion in net inflows over the past year, compared with roughly $453.58 billion of net inflows in 2024.
During the latest week, investors added $16.89 billion to US equity funds, marking a second consecutive week of net purchases. European and Asian equity funds also saw weekly inflows of $5.75 billion and $2.67 billion, respectively.
Sectoral equity funds gained a net $1.73 billion in weekly inflows with financial, real estate and industrial sectors drawing a net $574 million, $413 million and $337 million, respectively. Healthcare still saw a net $510 million in weekly outflows.
Global bond funds, meanwhile, posted $1.97 billion of net outflows, their first weekly sales since April 16. Despite the setback, bond funds attracted $891.74 billion of net inflows in 2025, following $1.05 trillion in net inflows in 2024.
Short-term bond funds saw withdrawals of about $5.23 billion after a sizeable $10.16 billion net purchase the previous week. Euro-denominated bond funds, corporate bond funds and government bond funds, however, recorded weekly inflows of $1.14 billion, $1.13 billion and $765 million, respectively.
Investors also parked $79.4 billion into the safety of money market funds as they ended a three-week selling trend in these funds.
Gold and precious metals commodity funds were popular for an eighth straight week, with roughly $2.03 billion in net weekly inflows.
In emerging markets, bond funds saw a $1.1 billion net outflow as investors ended a five-weeks-long buying trend. They, however, snapped up $242 million worth of equity funds, data for a combined 28,544 funds showed.