Investors placed £530 million into funds in November, the strongest month since May 2025, according to data published by the Investment Association (IA) today.
November’s inflows are a marked improvement on last year’s Budget month figures, which saw substantial outflows of £5.7 billion (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.
Equity funds remain in the red, but UK outflows slow
Equity outflows slowed in November to £2.9 billion, down from October’s £5.0 billion and markedly lower than 2024’s Budget month (October) figure of £5.7 billion. However, all regions continued to record outflows, most significantly from Global (-£943 million) and North America (-£640 million), yet this is an improvement on October’s data when outflows from Global and North America reached -£2.4 billion and -£859 million respectively.
Continued outflows from Asian equities (-£401 million) highlight the ongoing impact of uncertainty over trade tariffs.
Retail investors’ sentiment towards UK equities showed signs of stabilisation in November 2025, as the region recorded its smallest outflows since May at -£453 million. This stands out against a backdrop of persistent risk-off behaviour and ongoing outflows from global equities, suggesting that investors may be reassessing the UK market’s prospects and reflect a growing recognition among retail investors of the UK’s value proposition.
The improvement coincided with the FTSE 100 Index closing 2025 with a robust 26% gain (source: Morningstar), In contrast, the S&P 500 returned 10% in sterling terms over 2025, which may be helping to draw investor attention to UK equities. The FTSE’s strong performance appears to have positioned the UK as an increasingly attractive alternative to the US, particularly as concerns mount over valuation bubbles and concentration risk in major American technology firms.
UK stocks are seen as good value with more room to grow, in contrast to some US market stocks where valuations are very high, leading to concerns about an AI-driven bubble and a US market correction. Investing in the UK is also a good way of diversifying away from the US and managing equity risk in portfolios and UK investors may be waking up to this after favouring European stocks earlier in the year.
UK Equity net retail sales, November 2024 – November 2025
Diversification for fixed income sectors
Fixed income shifted back to significant inflows overall in November, reaching £1.1 billion, following -£62 million of outflows in October.
This resurgence reflects a growing appetite for diversification across the asset class, as retail investors sought to balance risk across a range of fixed income sectors. The month’s inflows were led by Mixed Bond (£360 million), £ Strategic Bond (£262 million) and UK Gilts (£117 million), with UK Gilts notably reversing three consecutive months of outflows.
Outflows from Government Bonds also eased significantly, falling to just -£11 million in November compared to October’s £381 million outflows and heavy redemptions in Q3 2025.
There has also been rising interest in emerging market bond funds and their yield potential, Global Emerging Market Bond – Local Currency continued its seven-month streak of inflows, attracting £100 million in November. This sustained interest highlights a willingness among investors to seek yield and diversification beyond traditional developed markets and reflects a drive to diversify away from US Dollar assets.
Corporate Bond funds, which returned to outflows of £8 million, had until this month emerged as a more attractive option than Government Bonds but November’s data reveals a clear preference for a mixed strategy investing across different bond types .
Top selling fixed income sectors, November 2024 – November 2025
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.
Sales to fixed income funds also rose as investors continue to de-risk. There are early signs that relatively low UK equity valuations are starting to attract investors looking to diversify away from the US: the UK market has greater room for growth, reflected in the FTSE’s solid performance through 2025. European equity funds had been the main beneficiaries of investors looking to reduce US exposure through the year, but a rare monthly inflow to active UK equity funds could signal renewed interest from investors.
“As we enter the new year, 2026 has so far been marked by the US deposition of Nicolas Maduro in Venezuela, a country with significant oil reserves. Even as immediate market reactions, particularly in oil, have been relatively contained, in this environment of growing uncertainty over the geopolitical ramifications of the US’ actions, households and savers are likely to continue favouring‑ a cautious approach. Diversified allocations over the long-term can look through near-term volatility as market and political dynamics evolve.”
