UK retail investors placed a net £530m into funds in November, the strongest month since May 2025, new figures released by the Investment Association (IA) have shown.

This followed investors withdrawing £4.5bn from funds in October

According to IA data, November’s inflows were a marked improvement on last year’s Budget month figures, which saw outflows of £5.7bn in October 2024. The association said this suggests concerns around potential tax changes including restrictions to pension tax free lump sums in the Budget had subsided in November.

The figures showed that fixed income shifted back to significant inflows overall in November, reaching £1.1bn, following £62m of outflows in October.

In equities, outflows slowed in November to £2.9bn, down from October’s £5bn. Retail investors’ sentiment towards UK equities showed signs of stabilisation in November, the IA added, with the UK recording its smallest outflows since May at £453m.

Director, market insight and fund sectors at the IA, Miranda Seath, said that November’s data signalled a “notable shift in investor sentiment”, with funds returning to inflows for the first time in six months.

“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,” Seath said.

“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.”

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