Global fund flows surged by 280% in 2024, fueled by an artificial intelligence-driven stock market rally, according to a report by Calastone, the fund network. Equity funds attracted a record $1.2 trillion in net inflows, as investors piled into AI-related stocks.
AI Hype Fuels Record Inflows
The Calastone report, published on Wednesday, showed that total net inflows into global funds reached $1.5 trillion in 2024, up from $400 billion in 2023. The surge was largely attributed to the AI boom, with technology-focused funds seeing inflows of $300 billion. “The AI frenzy has been a major driver of investor sentiment,” said Edward Glyn, head of global markets at Calastone.
Equity Funds Dominate
Equity funds accounted for the bulk of inflows, with $1.2 trillion, up 340% from the previous year. Bond funds attracted $200 billion, while money market funds saw $100 billion in inflows. The report noted that the rally was broad-based, with inflows across regions and sectors.
Regional Breakdown
North American funds led the way, attracting $600 billion in net inflows, followed by European funds with $400 billion and Asia-Pacific funds with $300 billion. The UK saw $50 billion in inflows, a significant increase from $10 billion in 2023. “The AI story is global, but the US market has been the primary beneficiary,” Glyn added.
Outlook for 2025
Looking ahead, Calastone expects fund flows to remain strong in 2025, driven by continued AI adoption and potential interest rate cuts. However, risks include valuation concerns and regulatory changes. “Investors should remain cautious, but the momentum is likely to continue,” Glyn said.
