- Total estimated net inflows to mutual funds and ETFs reached €84.52bn in July, with equities leading the asset-class ranking (+€32.98bn) ahead of bonds (+€31.03bn)
- Equity demand remained overwhelmingly ETF-led (+€37.15bn) while equity mutual funds shed €4.17bn
- Equity Global was the month’s best-selling classification (+€15.71bn), followed by Equity US (+€9.85bn)
- Money Market GBP attracted €6.43bn and Money Market EUR €2.44bn, while Money Market USD was July’s weakest classification (-€4.92bn)
- BlackRock led July promoter flows (+€10.89bn), ahead of Vanguard (+€9.13bn) and HSBC (+€8.75bn)
Executive Summary
July saw an uneasy combination of renewed geopolitical risk, higher energy prices, and still-resilient economic activity. Renewed US-Iran hostilities pushed oil sharply higher, reigniting inflation concerns and driving government yields upwards. German and UK 10-year government bond yields both rose 29 basis points (bps), while the Fed, ECB, BoE, and BoJ left policy rates unchanged. Markets caught between higher-for-longer rate risks and a still-robust earnings backdrop.
Equity leadership shifted over the month. The hitherto laggards of the FTSE 250 and FTSE 100 led major regional indices as investors rotated away from crowded momentum trades towards value and defensive exposures, according to FTSE Russell analysis. Energy and Financials were the principal beneficiaries, while tech deflated—particularly the hardware-heavy Asian markets, where concerns over AI infrastructure spending and valuations triggered a sharp reversal.
Lots to keep investors ion their toes, then. How has the European fund market reacted?
Against that backdrop, mutual funds and ETFs attracted a healthy-looking €84.52bn in July, with every major asset class in positive territory. Equities narrowly topped the table (+€32.98bn), just ahead of bonds (+€31.03bn). But the equity mutual funds suffered €4.17bn of redemptions while ETFs gathered €37.15bn. Investors, therefore, continued to add equity risk aggressively, but overwhelmingly through ETFs. By contrast, bond flows were much more balanced, with mutual funds attracting €22.29bn and ETFs €8.73bn. Despite government bond prices coming under pressure as yields rose, the strength of flows suggests investors were willing to use the back-up in yields as a signal to buy.
Equity Global was July’s best-selling classification (+€15.71bn), with ETFs accounting for €12.57bn of the total, while Equity US ranked second (+€9.85bn) despite mutual fund redemptions of €0.58bn. Equity Emerging Markets Global also remained in favour (+€4.74bn), notwithstanding the sharp sell-off in some technology-heavy Asian markets, while Equity Sector Information Technology, just outside the top 10 classifications, still gathered €2.31bn. The rotation away from technology leadership in market performance did not therefore translate into a head to the exits by European fund buyers.
Liquidity flows, however, showed a pronounced currency shift. Money Market GBP was the third best-selling classification (+€6.43bn), while Money Market EUR rebounded from the previous month’s redemptions (+€2.44bn). By contrast, Money Market USD fell from grace, suffering July’s largest classification redemptions (-€4.92bn). The dollar ended the month modestly weaker against both sterling and the euro, while expectations around the timing and extent of further Fed tightening may account for some of this, although flows to the classification have been volatile throughout 2026.
Asset Type Flows
Asset Type Flows July 2026
Chart 1: Estimated Net Flows by Asset and Product Type – July 2026 (€bn)
Source: LSEG Lipper
July saw positive flows across every major asset class, but the underlying vehicle split remained striking: ETF demand continued to dominate equities, while mutual funds retained the upper hand across bonds, liquidity, and allocation strategies.
Total estimated net inflows to mutual funds and ETFs reached €84.52bn, with ETFs attracting €49.28bn compared with €35.25bn for mutual funds. Flows were heavily concentrated in equities and bonds, which together accounted for around three-quarters of total net sales over the month, although all asset classes were in positive territory.
Equities narrowly led the asset-class rankings (+€32.98bn), overtaking June’s leaders, bonds. However, that headline masks the now-familiar divergence between product structures: equity mutual funds suffered redemptions of €4.17bn, while ETFs attracted a €37.15bn. Once again, investors were clearly willing to add equity exposure, but overwhelmingly through the exchange-traded channel, reinforcing the structural migration away from equity mutual funds.
Bonds followed closely with inflows of €31.03bn, though here the product mix was markedly different. Mutual funds accounted for €22.29bn of the total, with ETFs contributing a further €8.73bn. Unlike equities, therefore, fixed income demand remained broad across both wrappers, with traditional mutual funds continuing to capture the larger share.
Money market funds gathered €7.71bn (+€5.60bn MF/+€2.11bn ETF), while mixed assets attracted €6.77bn, almost entirely through mutual funds (+€6.66bn). Alternatives (+€3.27bn) and commodities (+€2.50bn) also recorded positive flows, with the latter showing a relatively meaningful ETF contribution of €1.00bn.
Real estate returned a modest €0.24bn of inflows, all through mutual funds, while “other” funds were broadly flat at €0.01bn.
Asset Type Flows Year to Date
Chart 2: Estimated Net Sales by Asset and Product Type, Year to Date (€bn)
Source: LSEG Lipper
Year-to-date estimated net inflows to European mutual funds and ETFs reached €572.54bn, with mutual funds attracting €301.63bn and ETFs €270.91bn. Equities remain comfortably the best-selling asset class in 2026, followed by bonds, money markets, and mixed assets. Except for real estate, every major asset class remains in positive territory.
Equity funds have gathered €212.25bn year to date but, as with July’s figures, the underlying split is striking: ETFs account for €207.86bn of the total, compared with just €4.38bn for mutual funds.
Bonds rank second, attracting €155.48bn, with mutual funds taking the larger share (+€107.77bn) but ETFs also making a substantial contribution (+€47.71bn). Money market funds follow with €99.17bn, overwhelmingly concentrated in mutual funds (+€85.96bn), underlining the continued importance of traditional vehicles for liquidity management.
Mixed-assets funds have gathered €81.51bn, almost entirely through mutual funds (+€81.22bn), while alternatives have attracted a further €18.18bn, again overwhelmingly through the mutual fund channel. Commodities are also firmly positive at €6.82bn, with mutual funds accounting for €5.18bn and ETFs €1.64bn. “Other” funds have added a more modest €0.97bn.
Real estate remains the sole asset class in negative territory, with YTD redemptions of €1.85bn, entirely from mutual funds. Overall, the 2026 flow picture continues to show a pronounced divide by vehicle: ETF demand is overwhelmingly concentrated in equities, while mutual funds retain the upper hand across fixed income, cash, mixed-assets, and alternatives.
Fund Flows Active vs Passive Products
Chart 3: Total Net Assets by Product Type, €bn (LHS); Flows by Product Type, Year to Date, €bn (RHS).
Source: LSEG Lipper
By assets under management, actively managed mutual funds continue to dominate the European fund industry, accounting for €14.11trn, or 72% of total assets. ETFs represent €3.12trn, or 16%, while index-tracking mutual funds account for a further €2.44trn, or 12%. In stock terms, therefore, the industry remains firmly anchored in traditional active vehicles despite the continuing expansion of passive products.
The flow picture, however, looks markedly different. Year to date, ETFs have attracted €270.91bn, ahead of active mutual funds at €253.43bn, while index mutual funds have gathered €48.20bn. More strikingly, ETFs dominate long-term asset flows, taking in €257.70bn compared with €172.26bn for active mutual funds and €43.41bn for index mutual funds. That divergence again underlines the structural shift towards exchange-traded implementation for long-term exposures, particularly equities.
Fund Flows by Lipper Global Classification
Fund Flows by Lipper Global Classification, July 2026
Chart 4: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, July 2026 (€bn)
Source: LSEG Lipper
July’s classification rankings were led by broad equity exposures, with Equity Global the best-selling Lipper Global Classification (+€15.71bn). The underlying split was heavily skewed towards ETFs (+€12.57bn versus €3.14bn for mutual funds). Equity US ranked second with €9.85bn, but the divergence by vehicle was even more pronounced: (ETFs +€10.43bn/mutual funds -€0.58bn). Once again, investors were adding mainstream equity beta predominantly through exchange-traded products. Equity Emerging Markets Global also remained firmly in favor (+€4.74bn), with ETFs accounting for €3.66bn of the total. Just outside the table, Equity Sector Information Technology attracted €2.31bn, dropping slightly from June’s fourth-placed flows.
Money Market GBP was the third best-selling classification, attracting €6.43bn, almost entirely through mutual funds, with Money Market EUR also rebounding from June’s large outflows to attract €2.44bn.
Bond Other (+€3.53bn) and Bond Global USD (+€3.15bn) highlighted continued demand for fixed income, while Equity Global Income attracted €3.13bn, split relatively evenly between mutual funds and ETFs. Mixed Asset EUR Flexible – Global (+€2.89bn), and Mixed Asset GBP Conservative – Global (+€2.32bn) completed the top 10.
At the other end of the table, Money Market USD recorded the largest redemptions at €4.92bn, with mutual fund outflows of €5.23bn partly offset by €0.31bn of ETF inflows. That contrasts sharply with June’s picture, where USD MMFs were the second-most popular classification. It’s hard to say what’s driving this: USD MMF deployment into US long-term assets would suggest this would be a short-term effect, while a response to weakening dollar and expectations that the Fed won’t tighten this year may mean a longer-run impact. Suffice it to say, Money Market USD have been volatile this year.
Mixed Asset GBP Balanced – Global was the second-weakest classification (-€3.48bn), followed by Equity Europe ex UK (-€2.94bn). Equity UK (-€1.15bn), Equity China (-€1.04bn), and Equity Global Small & Mid Cap (-€0.79bn) were also in negative territory.
Target-maturity strategies were also prominent among the laggards, with Target Maturity MA EUR 2045+ (-€1.85bn), Target Maturity MA EUR 2030 (-€1.42bn), Target Maturity MA EUR 2040 (-€0.77bn), and Target Maturity Bond EUR 2020+ (-€0.68bn) all seeing redemptions, overwhelmingly from mutual funds.
Fund Flows by Lipper Global Classification, Year to Date
Chart 5: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, Year to Date (€bn)
Source: LSEG Lipper
Year to date, the classification rankings remain dominated by broad equity and liquidity exposures. Equity Global is comfortably the best-selling Lipper Global Classification, attracting €89.49bn, with ETFs accounting for €78.37bn of the total. Equity US has gathered a further €28.81bn, but here the structural divide is even more pronounced (mutual funds -€9.26bn/ETFs +€38.07bn). Equity Emerging Markets Global (+€26.65bn) and Equity Global Income (+€17.22bn) also feature among the leaders, the former again heavily ETF-led, while Global Income demand has been much more evenly split between the two product types.
Liquidity remains another major source of demand. Money Market EUR has attracted €54.86bn YTD and Money Market USD €35.80bn, with both classifications still overwhelmingly mutual fund led. Taken together, their presence near the top of the rankings shows that strong participation in equity markets has continued alongside substantial cash allocations rather than at their expense.
Elsewhere, Bond Global USD has gathered €25.32bn, with a clear bias towards mutual funds (+€17.06bn), while mixed-asset strategies have also been consistently well supported. Mixed Asset USD Flexible – Global (+€14.43bn), Mixed Asset EUR Flexible – Global (+€13.93bn), and Mixed Asset GBP Aggressive – Global (+€13.46bn) have attracted almost all their flows through mutual funds. This provides an important counterpoint to the ETF dominance evident in equities: traditional mutual funds continue to capture the bulk of demand for allocation, liquidity, and much of fixed income.
At the bottom of the table, Equity Europe ex UK has suffered the largest YTD redemptions (-€9.38bn), followed by Equity Asia Pacific ex Japan (-€5.50bn, despite strong YTD performance), Equity China (-€4.88bn), Equity UK (-€4.09bn), and Equity India
(-€3.63bn). Equity Sector Healthcare has also remained under pressure (-€4.45bn). Notably, the weakness in several of these classifications is concentrated in mutual funds, with ETF inflows partially offsetting redemptions in Equity UK, India, and Asia Pacific ex Japan.
Outside equities, Target Maturity MA EUR 2030 has lost €7.41bn, entirely from mutual funds, while Bond USD (-€4.48bn) and Bond USD High Yield (-€3.28bn) have also seen redemptions despite the strong YTD demand for Bond Global USD. Protected products have shed €3.86bn.
Flows: Institutional v Retail
Chart 6: Asset Class Flows, Active and Passive, July 2026 (€bn)
Source: LSEG Lipper
July’s data reveal markedly different positioning: retail demand was heavily tilted towards equities and mixed assets, whereas institutional investors favored bonds and liquidity while reducing equity exposure. Retail funds accounted for most of the demand, attracting €73.67bn, while institutional investors added a more modest €10.85bn.
Equities led overall flows at €32.98bn, although the underlying split was striking: retail investors poured €40.87bn into the asset class, while institutional investors withdrew €7.89bn. As global equity indices bounced around with a downward trend, retail money piled in as institutions sat on the sidelines and waited for the next dance—a pattern broadly in line with June.
With yields heading up and curves steepening over the month, bonds were the second-best-selling asset class, attracting €31.03bn, with both channels contributing strongly (+€20.49bn retail/+€10.53bn institutional). Indeed, bonds accounted for almost all institutional net buying outside money markets.
Money market funds gathered €7.71bn, overwhelmingly from institutional investors (+€7.55bn), while retail flows were just €166m. Mixed assets attracted a further €6.77bn, although here the pattern was reversed, with retail investors contributing €8.81bn against institutional redemptions of €2.04bn.
Elsewhere, alternatives (+€3.27bn) and commodities (+€2.50bn) saw demand from both investor types.
Chart 7: Asset Class Flows, Institutional v Retail, YTD 2026 (€bn)
Source: LSEG Lipper
The year-to-date picture shows retail investors doing most of the heavy lifting, with €447.15bn of net inflows compared with €125.39bn from institutional investors. More importantly, however, the two channels have adopted markedly different positions across asset classes.
The contrast is clearest in equities. Retail investors have allocated €238.96bn YTD, making equities comfortably their largest destination, while institutional investors have withdrawn €26.71bn. This divergence echoes July’s pattern and points to a considerably greater appetite for equity risk among retail buyers, while institutions have instead favored fixed income and liquidity.
Indeed, bonds have been the principal destination for institutional capital, attracting €73.79bn, alongside a further €50.40bn into money market funds. Together, these two asset classes account for virtually all institutional net inflows YTD. Retail investors have also been significant bond buyers (+€81.69bn), but their money market allocations have been somewhat lower (+€48.77bn).
Mixed assets provide another point of contrast. Retail flows stand at €67.83bn, almost five times the institutional total of €13.68bn, reinforcing the importance of diversified allocation products within the retail channel. Alternatives have seen a more balanced split, with institutions dominating (+€6.21bn retail/+€11.97bn institutional). This would fit with the picture of a more risk-averse institutional market seeking greater downside protection.
At the margins, commodities have attracted €3.59bn and €3.23bn, retail and institutional respectively, while real estate is the only asset class to have suffered outflows from both groups (-€1.57bn retail/-€272m institutional). YTD positioning shows a pronounced divide in line with the month’s view: retail investors have embraced equities and mixed assets, whereas institutional demand has been concentrated overwhelmingly in bonds and cash.
Fund Flows by Promoter
Chart 8: Ten Best-Selling Fund Promoters in Europe, July 2026 (€bn)
Source: LSEG Lipper
The 10 best-selling fund promoters in July accounted for €57.26bn of net inflows, equivalent to 97.2% of total estimated net flows. Promoter rankings were dominated by BlackRock and Vanguard in risk assets, while HSBC, Amundi, and BNP Paribas captured the lion’s share of liquidity allocations.
BlackRock led the table with €10.89bn, with particularly strong demand for both equities (+€8.65bn) and bonds (+€5.54bn)—the largest inflows into either asset class among the top 10 promoters. These gains more than offset redemptions from MMFs
(-€2.37bn) and mixed assets (-€1.25bn). Vanguard ranked second at €9.13bn, similarly benefiting from strong equity (+€6.62bn) and bond (+€2.13bn) sales.
HSBC followed closely with €8.75bn, but with a very different flow profile: €7.22bn came from MMFs, making it comfortably the largest money-taker in the asset class. Amundi ranked fourth (+€7.13bn), with demand also concentrated in MMF (+€4.15bn), supplemented by Equity (+€2.43bn) and Mixed Assets (+€0.78bn). BNP Paribas was another significant beneficiary of liquidity demand, with money market inflows of €4.52bn accounting for effectively all of its €4.50bn overall result, as equity funds suffered modest redemptions.
Further down the rankings, Legal & General gathered €4.47bn across a relatively broad range of asset classes, led by MMF (+€2.36bn) and mixed assets (+€0.78bn). Invesco’s €3.86bn was, by contrast, heavily equity-driven (+€3.32bn), alongside €1.05bn of bond inflows, partly offset by Money Market redemptions.
Schroders led mixed asset sales (+€0.92bn) and also gathered €1.10bn into equities, while HSBC recorded the largest alternatives inflow (+€0.39bn).
Chart 9: Ten Best-Selling Fund Promoters in Europe, Year to Date (€bn)
Source: LSEG Lipper
The 10 best-selling fund promoters year to date accounted for €304.29bn of net inflows, or 49.5% of total estimated net flows, highlighting a considerable concentration of sales among the largest firms.
BlackRock retained a commanding lead (+€75.58bn), underpinned by €54.85bn of equity inflows and €23.38bn into bonds—the largest totals for either asset class among the top 10. Those gains more than offset €5.90bn of money market redemptions. Vanguard ranked second at €47.74bn, with a similarly risk-oriented profile: equities contributed €35.22bn and bonds €9.92bn.
Amundi followed with €35.38bn, again led by equities (+€27.23bn), but with more diversified support from money market (+€5.51bn) and mixed assets (+€4.29bn). DWS was close behind at €32.97bn, with €19.08bn of equity sales supplemented by €4.55bn in mixed assets and €4.29bn in money market funds. It also attracted the largest alternatives (+€1.02bn) and commodity (+€0.95bn) inflows among the top 10 promoters.
HSBC’s €29.83bn total had a markedly different complexion. Money market funds accounted for €17.29bn—the strongest liquidity inflow of any promoter in the group—while bonds added a further €7.23bn. By contrast, State Street Investment’s €21.70bn was driven predominantly by equities (+€18.94bn), despite bond redemptions of €3.02bn.
PIMCO also stands out for the composition of its €18.69bn of YTD inflows. Mixed assets contributed €10.00bn, the largest total in that asset class among the leading promoters, while bonds added €7.79bn. Overall, the year-to-date rankings show BlackRock and Vanguard dominating equity and bond gathering, while HSBC has led liquidity sales and PIMCO has captured the largest share of mixed-asset demand.
