Equity fund outflows in 2025 reached their worst level on record, according to data from Calastone, as investors pulled billions of pounds from stock market funds amid concerns over valuations and policy uncertainty.
After a seventh consecutive month of net withdrawals in December, Calastone said 2025 was the weakest year for equity fund flows in its records. A further £188m was withdrawn in the final month of the year, taking total net outflows for 2025 to £6.71bn, according to the firm’s Fund Flow Index.
Calastone said the figure was comfortably the worst in its 11 year data history and more than double the previous record of £3.34bn set in 2016, the year of the Brexit referendum. Since June 2025, investors have withdrawn a net £10.57bn from equity funds, marking the largest and most prolonged period of selling on record.
The bulk of the selling was concentrated in actively managed equity funds, which suffered £18.9bn of net outflows over the year. By contrast, passively managed equity strategies attracted £12.2bn of net inflows, reflecting investor preference for lower cost exposure and scepticism over the ability of active managers to add value during a volatile year.
There were signs of stabilisation towards the end of the year. December outflows were the smallest since June, with every equity sector either reducing net withdrawals or returning to net inflows, a slowdown that Calastone said partly reflected greater clarity following the autumn budget.
North American equity funds showed the sharpest turnaround, shifting from an £812m outflow in November to a £107m inflow in December. Global equity funds also recovered, moving from a £747m outflow to inflows of £174m.
Outflows from UK focused equity funds narrowed to £541m from £847m a month earlier. Despite the FTSE 100 reaching record highs in 2025, investors withdrew £9.55bn from UK equity funds over the year, broadly in line with 2024’s £9.56bn and marking the tenth consecutive year of net withdrawals.
Elsewhere, investors favoured lower risk assets. Multi asset funds attracted net inflows of £11.76bn over the year, while money market funds recorded a record £5.84bn of inflows. Fixed income funds drew in £1.51bn, though this remained less than half its decade average.
Edward Glyn, head of global markets at Calastone, said the slowdown in outflows late in the year should not be read as a return to risk.
“The sudden, dramatic slowdown in outflows between November and December is a clear indicator that months of pre-budget speculation contributed to the record outflows from equity funds between June and budget day,” he said.