HKIFA Sees Investment Flows Moving Into Equity, Bond and Mixed-Asset Funds

HKIFA investment flows are expected to shift toward equity, bond and mixed-asset funds next year as expectations of rate cuts lift risk appetite and cash leaves maturing high-interest deposits.

The Hong Kong Investment Funds Association reported strong momentum, noting Hong Kong retail fund sales rose 35% year on year in the first three quarters to USD82.6bn, surpassing 2024’s full-year total.

Net inflows hit a 10-year high at USD15.7bn. Equity funds posted USD16.8bn in sales but saw a USD40m net outflow.

Bond funds collected USD32.5bn in sales and matched that amount in net inflow, while mixed-asset funds recorded USD17.2bn in sales with USD1.7bn in inflows.

HKIFA said HKIFA investment flows now reflect a gradual rotation into diversified portfolios as investors prepare for lower rates.