UK investors withdraw record amount from equity funds in August

According to Edward Glyn, head of global markets at Calastone, "markets are pricing in the possibility that inflation could be extremely harmful and persistent, meaning interest rates will remain higher for longer than originally anticipated."

"A weakening economy and higher interest rates are particularly harmful for stock prices, especially growth stocks," he declared.

Nevertheless, funds that specialize in renewable energy investments have attracted inflows, despite the economy being negatively impacted by drastically rising gas prices. Similar trends have been observed in equity funds focused on corporate governance, social responsibility, and environmental protection, according to Calastone.

source: ft.com