Global equity funds attract $28.16 billion as easing yields boost sentiment

Treasury yield fell about 15 basis points last week and then dropped below the psychologically significant 5% level, supporting appetite for riskier assets.Investor sentiment was also buoyed by encouraging corporate earnings. Nearly 18% of companies in the MSCI All Country World Index reported results for the current reporting season, with about 73% exceeding average analyst estimates, LSEG data showed.Read more: Global Market: China's yuan hits four-year high as dollar weakens ahead of policy meetingsLive EventsAsian equity funds lead regional inflowsAsian equity funds attracted $11.53 billion during the week, marking their largest weekly inflow since at least December 2022, the LSEG Lipper data showed.European equity funds recorded net inflows of $9.14 billion, while U.S. equity funds attracted $5.07 billion as investors continued allocating money to stock markets across major regions.Among sector-specific funds, technology funds attracted $5.05 billion, reversing net outflows of $4.77 billion in the previous week.Healthcare funds received inflows of $1.83 billion.

In contrast, consumer discretionary funds recorded net outflows of $1.29 billion, indicating a more selective approach to sector investments.Read more: Global Market: South Korean shares fall over 1% as AI trade concerns weigh; won strengthensBond funds extend inflow streakGlobal bond funds attracted $9.44 billion in net inflows, marking their fifth consecutive week of gains as investors continued to allocate capital to fixed-income assets.Swiss franc-denominated bond funds led the inflows, attracting $6.8 billion, their largest weekly intake since at least November 2024.Short-term bond funds received $2.78 billion, while high-yield bond funds recorded outflows of $1.68 billion.

Government bond funds also saw withdrawals of $550 million during the week.Money market funds attracted net inflows of $15.86 billion, reversing the previous week's $47.51 billion outflows, the data showed.Precious metals funds maintain investor interestAmong commodity-related funds, gold and other precious metals funds attracted $1.29 billion in net inflows, marking their fifth week of net purchases in the past six weeks.Energy funds also recorded inflows, attracting $41.5 million during the week.Emerging market equity funds see strongest inflows since AugustEmerging market equity funds attracted $6.28 billion during the week, marking their largest weekly net purchases since August 5, according to data covering 29,174 emerging market funds.However, emerging market bond funds recorded marginal net outflows of $48.72 million, suggesting that investor demand remained stronger for equities than for fixed-income assets in developing economies.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)(You can now subscribe to our ETMarkets WhatsApp channel)