London, UK – British investors continued a record-extending streak of stock selling in November, with net withdrawals from equity funds totaling £3 billion ($4 billion), according to data from funds network Calastone. This marked the sixth consecutive month of net selling, bringing the total outflows over the period to £10.4 billion ($13.87 billion). November’s outflow was the second-largest on record, only behind October’s £3.6 billion ($4.8 billion) cash exit.

Political and Economic Concerns Drive Equity Outflows

The sustained selling spree was largely attributed to investor uncertainty surrounding the UK government’s budget, delivered by Finance Minister Rachel Reeves on November 26. While the budget increased certain taxes for savers and investors, it fell short of the more drastic measures that some market participants had feared. Daily trading data showed equity outflows halted immediately following the budget announcement, with inflows resuming in the last three trading days of November.

“The political narrative has played havoc with UK savers in recent months. Never have we seen such consistent or large-scale selling before,” said Edward Glyn, head of global markets at Calastone. “The sudden halt in equity-fund outflows that took place after the budget was delivered is clear evidence that many investors were selling their holdings as concerns rose.”

Safe-Haven Funds See Record Inflows

Amid equity market uncertainty, UK investors shifted money into perceived low-risk investment vehicles, with record inflows of £1.3 billion into money market funds and £643 million into fixed income funds in November. This trend underscores a preference for capital preservation during periods of political and economic uncertainty.

Market Implications

The sustained equity fund outflows in the UK highlight the sensitivity of investors to fiscal policy changes and the impact of government budgets on market sentiment. Analysts suggest that while some funds are now seeing inflows post-budget, the broader trend of cautious investment behavior may continue as market participants assess the medium-term impacts of tax and regulatory changes.