April saw the strongest retail fund inflows of 2025 amid extreme market volatility prompted by Donald Trump’s tariff policies, the Investment Association has reported.
Inflows of £1.1bn were recorded in the month, which was almost double the £519m in March when ISA season and the new tax year increased flows.
Equities saw £962m in inflows, with North American equities accounting for £948m as investors ‘bought the dip’ heavily.
European equities saw a second month of modest inflows at £106m, down on £245m in March
Global equities funds saw inflows of £872m while UK equities funds saw continued outflows of £817m, but this was less than the £1.2bn outflow in March.
Multi-asset funds booked inflows of £728m in April, up from just £149m in March. This was the highest inflow since August 2021.
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Money market funds also saw a second month of strong inflows with £1.1bn following £1.3bn in March.
Bond funds experience more heavy outflows in April, with £1.8bn leaving. High yield saw record outflows of £177m as tariffs stoked inflation fears.
Index tracking funds took inflows of £969m in the month, which marked the lowest inflows to index trackers since October 2024. Outflows from fixed income trackers were highest at £426m.
April’s data represents a second consecutive month of fund inflows after the first quarter of the year was the worst for outflows since 2023.
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Miranda Seath, director, market insight and fund sectors at the Investment Association, said: “A second consecutive month of net fund inflows suggests that investors do retain a degree of confidence, even as global economic uncertainty continues.
“While part of the pick-up in flows is seasonal – many people have been making the most of their £20,000 ISA allowance before the 5 April tax-year deadline – we are also seeing genuine momentum in the markets. Notably, those willing to take on more risk have been investing in North American equities, buying the dip as valuations have fallen. This helped to give April’s inflows an extra boost.
“We’re beginning to see investor behaviour split into two camps. Investors with a risk-on approach are putting their money into North American equities,” she continued.
“Meanwhile, more cautious investors are favouring diversification away from US stocks into Europe and moving funds into lower-risk vehicles such as money market funds.
”Looking ahead, the outlook for global markets will remain unclear as long as uncertainty hangs over the economy and tariff policy remains changeable. If tariff threats do push up prices, central banks may delay cutting interest rates. That kind of scenario could mean that market turbulence persists.”
