Retail funds returned to inflows in November as investors placed £530m into funds, the strongest month since May 2025, data from the Investment Association (IA) has shown.

The association noted that November’s inflows were a marked improvement on last year’s Budget month figures, when outflows hit £5.7bn in October 2024, suggesting that concerns around potential tax changes had subsided.

However, investors’ low-risk sentiment continued with £2.9bn of equity outflows in November, although this was a reduction from the £5bn of withdrawals in October 2025.

Funds investing in UK equities recorded the smallest outflows since May 2025 at £453m, while active UK equity funds saw inflows of £52m.

Meanwhile, global equities and North American equities recorded outflows of £953m and £596m respectively.

Fixed income returned to inflows of £1.1bn after £62m of outflows in October, with mixed bond (£360m), strategic bond (£262m), and UK gilts (£117m) seeing the biggest inflows in November.

Money market funds recorded total inflows of £659m during the month, their largest monthly inflows since April 2025.

The IA noted that tracker funds saw “relatively low” inflows of £233m, while active funds recorded their highest inflows in six months at £297m.

“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,” said IA director, market insight & fund sectors Miranda Seath.

“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.”

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