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\t\tEquity funds saw record outflows in October, with \u00a33.63bn withdrawn\t<\/p>\n\t\t\tTuesday 11 November 2025 2:49 pm\n\t\t\t<\/p>\n
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\t\tEquity funds saw record outflows in October, with \u00a33.63bn withdrawn\t<\/p>\n
UK investors have withdrawn from equities at a record pace amid investor nerves over soaring stock prices and a flurry of forthcoming tax hikes at the Budget.<\/p>\n
As much as \u00a37.3bn was pulled from equity funds in the four months to the end of October, according to figures from Calastone, representing the largest outflow ever recorded.<\/p>\n
Some \u00a33.6bn of those net outflows were withdrawn in the month of October alone, representing the fifth consecutive month of outflows following a period of net inflows in the first half of the year.<\/p>\n
UK-focused funds accounted for one third of the net selling, with investors withdrawing \u00a31.2bn from the sector, while global funds saw a record \u00a3911m leave the sector and North American funds shed \u00a3649m, their third worst month on record.<\/p>\n
Edward Glyn, Head of Global Markets at Calastone said: \u201cTwo forces are driving investor behaviour. One is simply nerves about global equity prices, especially in the US. Outflows from global, US and tech funds are all part of that story.\u00a0<\/p>\n
\u201cThe other force stems from growing concern about Rachel Reeves\u2019s budget and the anticipated tax implications<\/a>. For some, it\u2019s a simple matter of crystallising capital gains in case rates go up. This drove a huge uptick in selling this time last year and it\u2019s clearly round two in 2026.<\/p>\n \u201cFor many others it\u2019s about pensions. The tax-free lump sum that over 55s may draw from their pensions is such a vital part of most people\u2019s retirement planning that the risk it will be scrapped or drastically scaled back is simply too concerning for many diligent pension savers in their 50s and beyond to contemplate.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tEquity fund exodus as market highs \u2018running on fumes\u2019<\/a><\/p>\n \u201cSpeculation on policy has made this drastic step the only rational choice for many, even if it may ultimately harm their longer-term financial goals.\u201d<\/p>\n<\/p>\n AI bubble concerns<\/p>\n