Asian investors have significantly increased their investments in equity funds during the first half of 2026, according to the latest data from Calastone, the largest global funds network. This marks a notable shift from the defensive stance of 2025, with US$7.3b poured into equity funds, a substantial rise from the US$0.8b recorded in the same period last year.
The data reveals a sharp reversal in fixed income fund flows, which saw net outflows of US$3.1b in H1 2026, contrasting with the strong inflows of 2025. Justin Christopher, Head of Asia at Calastone, noted, “One of the biggest changes we’ve seen this year is not simply stronger demand for equities, but a much weaker appetite for fixed income than we saw throughout 2025.”
Multi-asset funds emerged as the standout performer, attracting US$17b in net inflows, more than four times the combined net flows of equity and fixed income funds. This trend suggests investors are favouring diversification whilst increasing exposure to growth assets.
Despite ongoing geopolitical uncertainties, including trade tensions and conflicts in the Middle East, investors are focusing on long-term growth opportunities. Christopher added, “The sharp rotation away from fixed income alongside sustained demand for equities and multi-asset strategies suggests confidence is returning in a measured way.”
The shift in investment strategy indicates a growing comfort among investors to look beyond short-term macroeconomic events, driven by strong equity market performance and continued investment in AI and technology.
