The asset classes and fund managers that investors prefer

In March, investors flocked to passive strategies

We list the most well-liked asset classes and fund managers.

Despite the economic uncertainty brought on by the Iran War, investors are still investing in financial markets, alternating between active and passive strategies, according to data.

Even though the conflict in the Middle East could lead to a recession and increase inflation, investors are unfazed.

Net inflows for March 2026 were 1.11 billion, up from 149 million the month before, according to data from fund data firm Lipper.

BFIA problems nowadays. Because stock markets have recently reached all-time highs, investors are favoring passive over active strategies, especially when it comes to stocks.

According to Lipper data, active funds saw redemptions of £1.12 billion in March, while passive flows increased by £2.23 billion. See our separate piece about the most well-liked stocks, trusts, and funds for do-it-yourself investors.

The main source of passive demand, despite overall negative flows, was equity funds, which attracted 1.47 billion. Many of these funds turned to reputable asset managers to manage their portfolios.

These are the most well-liked assets and asset managers that investors trust with their funds.

The asset managers that are most in demand.

Vanguard led asset manager flows year-to-date in March, which may come as no surprise given the appeal of passive funds.

Investors contributed 3.01 billion to the brand, mostly through 2.52 billion in equity allocations and money market funds and mixed-assets contributions.

Following closely behind with 2.95 billion in inflows, Royal London is bolstered by 2.49 billion in equity investments and 1.82 billion in money market demand. This offset £1.09 billion in bond outflows.

Amundi's 2.44 billion puts them in third place. With 1.45 billion in fresh capital, its inflows were mostly in stocks.

According to the report, Schroders recorded inflows of £2.09 billion, primarily from the allocation of mixed assets.

Investors are putting their money where?

According to Lipper, mixed-assets funds attracted 2.75 billion in March, making them the clear winners. Active funds have received the majority of this.

Conversely, equity flows continued to be significantly negative, with net outflows of £2.79 billion. According to the Lipper research, passive vehicles brought in 1.47 billion while active equity funds lost 4.26 billion.

Bond flows were slightly negative, with net outflows of £16 million.

This was composed of 404 million in passive redemptions and 388 million in active funds.

When broken down by fund sector, Mixed Asset GBP Aggressive Global attracted 3.04 billion in March, leading flows.

Lipper claimed that active demand was the reason for the 1.83 billion in inflows into Equity Europe ex UK.

Strong buying interest was also observed in Money Market EUR at 0.71 billion, all through passive vehicles.

This is "something of an oddity," according to the report, since euro money market funds don't typically show up in UK investors' shopping baskets.

On the other hand, Money Market GBP experienced 0.59 billion in redemptions, nearly all of which came from active funds.

The exposures to fixed income were not uniform. Despite passive redemptions of 0.50 billion, Bond Global GBP collected 0.65 billion thanks to active inflows of 1.15 billion.

In a similar vein, Bond Global Corporates USD added 0.47 billion, with flows that were biased toward passive products.

Bond JPY, with 0.38 billion totally passive, was also one of the top gainers. Due to active strategies, emerging market stocks continued to draw investment; Equity Emerging Markets Global brought in 0.55 billion.

In January and February, the classification was the second and fourth most popular, respectively. On the down side, Equity Global experienced the biggest redemptions at 2.72 billion, which was a result of significant active outflows of 3.61 billion.

Bond Global Corporates GBP also saw significant outflows of £1.24 billion, with both passive and active factors playing a role.

UK-focused stocks continued to be under pressure, with outflows of 0.54 billion for Equity UK and 0.35 billion for Equity UK Small and Mid Cap. Despite this market's respectable medium-term performance, withdrawals of 0.51 billion were also made from Equity Asia Pacific ex Japan.

According to Lipper, the market is currently unable to decide whether it prefers active or passive fixed income, as evidenced by the fact that February was significantly more active than passive and January was the opposite.

The shifting between active and passive tactics could be an indication of the uncertainty brought on by the conflict with Iran and other geopolitical tensions.

InvestEngine's head of investments, Andrew Prosser, stated: "It's important to stay focused on the long term, but it's easy to get spooked by a few big market falls in times like this." Over the course of five, ten, or twenty years, these fluctuations become much less significant, even though your portfolio may experience some setbacks now. Investments have a much higher chance of growing over time, according to history, and occasionally the best days come after the worst.

"Recall that in April of last year, markets surged within a week of Liberation Day, with US stocks rising 9.5 percent, the largest daily gain since the financial crisis of 2008. The US had its best May since 1990, and the FTSE 100 and other international markets followed, despite the ongoing volatility.

This demonstrates the importance of patience: sometimes it's best to just sit on your hands and concentrate on your time horizon. A "

Regular investing can mitigate market fluctuations through pound-cost averaging, he says, adding: "It's also important to think about diversification and risk." Your portfolio won't be unduly exposed to any one shock if you hold a variety of stocks, bonds, gold, and cash from various industries and regions.

"Your allocation should also take into account your level of risk tolerance and your distance from your financial objectives. For instance, a person who is nearing retirement might prefer greater stability, but investors with longer time horizons can afford to take on more risk. The "