Investors pulled £38.1bn from active funds in 2023 as cost of living pressure bites

Continued pivot to trackers

Active funds suffered outflows totalling £38.1bn in 2023, as investors continued to favour tracker funds, according to data from the Investment Association (IA).

Last year marked the second year in a row the funds industry posted outflows, with investors taking a net £24.3bn out of funds. This figure was tempered by net inflows to tracker funds, which enjoyed positive flows of £14bn over the course of 2023. Equity fund flows hit three-year high at £2.6bn in February However, despite outflows continuing for another year, the figure was slightly tempered on the nearly £27bn withdrawn in 2022. The main share of the outflows came from equity funds, which saw £22bn withdrawn over the course of 2023, largely driven by UK equities, which witnes...