Europe’s Fund Investors Show Courage Again

Europe's Fund Investors Show Courage Again

One had actually expected that the corona crisis would drive European fund investors to caution, but according to the latest figures from the analysis company Morningstar, yield-oriented funds in particular recorded high inflows in July. The focus was on risky corporate, high-yield and flexible bonds in order to increase returns. This was reported by Morningstar Germany’s editor-in-chief Ali Masarwah. It can generally be observed that already last month a total of 62 billion euros flowed into open public portfolios, including 38 billion euros in bond funds and 15 billion in equity funds.

This is good for the actively managed funds. If you look at July alone, these funds experienced an inflow of 42 billion euros. There was explicit demand for growth and technology funds. In contrast to the active funds, the inflows for EFTs were only half as high at €20 billion. Popular categories included bonds, commodities and equities. According to Ali Masarwah, however, these fund categories were far from being disadvantaged, as passive funds gained greater momentum than actively managed funds due to the increased demand for gold, since for regulatory reasons there are usually hardly any active fund offers for gold.

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