Strong Inflows Reflect AI-Driven Market Optimism in Global Equity Funds

Global equity funds experienced significant inflows in the final week of 2025, driven by optimism over AI-driven market growth and robust corporate earnings projections. LSEG Lipper data revealed a $26.54 billion net inflow, contributing to a total of $239.76 billion for the year, following $453.58 billion in 2024.

In a display of market resilience and optimism, global equity funds witnessed strong inflows in the final week of 2025. The influx, attributed to the previous year's AI-driven market gains and a robust corporate earnings outlook, saw $26.54 billion added to these funds, according to LSEG Lipper data.

The MSCI World Index demonstrated remarkable performance with a 20.6% rise, marking its best annual growth since 2019. Analysts forecast similar growth in corporate earnings for 2026, projecting a 12.11% increase, closely aligning with the 2025 forecast.

Despite a net outflow of $1.97 billion from global bond funds, a significant $79.4 billion was invested in money market funds to counteract recent selling trends. Precious metals commodity funds remained in favor with $2.03 billion in inflows, as investors adjusted strategies across diverse markets.

(With inputs from agencies.)