Investors withdraw record £2.71 billion from equity funds in October

In October, investors withdrew a record £2.71 billion from equity funds, a 36% increase in sell orders compared to September. This surge was driven by concerns over a capital gains tax hike announced in the Autumn Budget. The new tax rates increased capital gains tax for basic rate taxpayers from 10% to 18% and for higher rate taxpayers from 20% to 24%. Following the Budget announcement, sell orders dropped by 40%, indicating a shift in investor behavior. Despite the significant outflows, many investors repurchased their investments within tax-efficient accounts like ISAs. Overall, October saw £17 billion in total fund sales, marking a notable change in market activity.