British investors have injected a record £11.4 billion ($14.5 billion) into equity funds during the first six months of 2024, driven by the anticipation of further central

bank interest rate cuts, according to fund network Calastone.

This influx into stocks marks the highest for any half-year period in Calastone's 10-year history. June alone saw UK investors add £1.7 billion to equities, continuing a robust trend of inflows.

"Hopes for cheaper money following the tough rate hikes of the last two-and-a-half years are clearly driving the record flows into equity funds this year," stated Edward Glyn, head of global markets at Calastone.

Global equity funds emerged as the most favored category in June, attracting £1.4 billion, while European equities drew in £714 million, the data revealed.

In contrast, North American equity funds, which had previously enjoyed strong growth, experienced minor outflows of less than £1 million. Although outflows from UK equity funds persisted, they slowed to £522 million, the smallest outflow recorded this year.

Additionally, investors withdrew £471 million from bond funds for the second consecutive month, bringing the two-month total to £1.1 billion. Photo by Kaihsu Tai, Wikimedia commons.