January this year saw retail outflows of around £1.3 billion from equities, with many investors opting for the relative safety of mixed-asset funds and money-market funds. With an attitude of caution, investors were waiting to see how the markets would develop throughout 2022.
The UK is continuing to bear the brunt of outflows, totalling approximately £1.6 billion. Investment Association (IA) UK All Companies was recorded as the worst-selling sector for January, when investors redeemed £1.4 billion from funds.
UK All Companies refers to funds that invest 80 per cent at least of assets in UK equities with a primary objective to achieve capital growth.
In January, the most popular sector by far was Short Term Money Market, enjoying net inflows of around £838 million. The second most sought-after asset class was Mixed Asset funds, with inflows of about £335 million.
UK consumers interested in different asset classes often look for investment advice in Shropshire, Cheshire and other UK counties. Offering an unbiased and expert opinion of investments, wealth managers can be counted on for financial guidance on available assets, outlining the potential risks and returns involved for investors.
The net outflows experienced by UK equities in January are a continuing theme from market movements witnessed in 2021. According to the Investment Association, last year, the UK All Companies sector had net outflows of £2.62 billion, while the IA UK Equity Income sector suffered even less popularity, experiencing redemptions that amounted to £3.28 billion.