Investors move from cash to US equities as confidence improves

Investment Association figures show

clock • 3 min read

Retail investors continued to return to funds in April, with fresh signs that money parked in cash-like investments is beginning to flow back into equity markets, according to figures from the Investment Association.

Net retail fund inflows reached £1.5bn during the month, up from £1.3bn in March and marking a sixth consecutive month of positive flows. A key development in April was the first outflow from money market funds since August 2025. Investors withdrew £755m from the sector after months of strong demand for low-risk, short-term assets. The move comes just one month after money market funds attracted a record £2bn of inflows as conflict in the Middle East raised concerns over global energy supplies and inflation. April's reversal suggested some investors are now redeploying that capital...

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