Equity fund outflows in 2025 reach worst level on record
Calastone said the figure was comfortably the worst in its 11-year data history and more than double the previous record of £3.34 billion set in 2016
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 straight month of net withdrawals in December, Calastone said 2025 was the weakest year for equity fund flows in its records. A further £188 million was withdrawn in the final month of the year, taking total net outflows for 2025 to £6.71 billion, according to the firm’s Fund Flow Index.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 £3.34 billion set in 2016, the year of the Brexit referendum. Since June 2025, investors have withdrawn a net £10.57 billion from equity funds, marking the largest and most prolonged period of selling on record.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 £18.9 billion of net outflows over the year. By contrast, passively managed equity strategies attracted £12.2 billion 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.
Outflows from UK focused equity funds narrowed to £541 million from £847 million a month earlier. Despite the FTSE 100 reaching record highs in 2025, investors withdrew £9.55 billion from UK equity funds over the year, broadly in line with 2024’s £9.56 billion and marking the tenth straight year of net withdrawals.