Global equity funds closed 2025 on a strong note, with investors showing renewed confidence amid AI-driven market gains and a robust corporate earnings outlook. According to LSEG Lipper data, global equity funds recorded $26.54 billion in net inflows during the last week of the year, following approximately $37.05 billion the previous week.

Market Performance and Fund Flows

The MSCI World Index rose 20.6% in 2025, marking its strongest annual performance since the 24.05% gain in 2019. Analysts covering 11,811 large- and mid-cap companies expect corporate earnings to grow 12.11% in 2026, largely in line with the 12.32% growth forecast for 2025.

Over the course of 2025, global equity funds attracted roughly $239.76 billion in net inflows, compared with $453.58 billion in 2024, reflecting sustained but slightly moderated investor enthusiasm.

Regionally, during the final week of 2025:

• U.S. equity funds: $16.89 billion in net inflows
• European equity funds: $5.75 billion in net inflows
• Asian equity funds: $2.67 billion in net inflows

Sectoral Trends

Sector-focused equity funds also saw positive activity, with $1.73 billion in weekly net inflows. Among sectors:

• Financials: $574 million
• Real estate: $413 million
• Industrials: $337 million
• Healthcare: Outflows of $510 million

Global Bond and Money Market Activity

Global bond funds experienced $1.97 billion in net outflows, the first weekly decline since April 16, 2025. Despite the setback, total bond fund inflows for 2025 reached $891.74 billion, slightly down from $1.05 trillion in 2024.

Short-term bond funds saw $5.23 billion in withdrawals, reversing the prior week’s $10.16 billion net inflow. Meanwhile:

• Euro-denominated bonds: $1.14 billion inflows
• Corporate bond funds: $1.13 billion inflows
• Government bond funds: $765 million inflows

Money market funds also rebounded, attracting $79.4 billion, ending a three-week streak of outflows.

Commodity and Emerging Market Flows

• Gold and precious metals funds: $2.03 billion inflows for the eighth consecutive week
• Emerging market (EM) bond funds: $1.1 billion outflow, ending a five-week buying streak
• EM equity funds: $242 million inflow

Overall, strong AI-driven gains, steady corporate earnings forecasts, and sector-specific flows helped global equity funds close 2025 on a high, with investors cautiously balancing equities, bonds, and money market allocations.