Singapore records S$1.3 billion inflow of funds in Q2, led by higher allocation funds: Morningstar
The financial services firm notes increasing underlying interest in Singapore equities today
In Q2 2026, Singapore's financial market saw net inflows of S$1.3 billion into funds, according to data from Morningstar. This figure was a decrease from the S$3.2 billion in Q1, but still marked a significant increase compared to historical levels. Arvind Subramanian, a senior analyst at Morningstar, attributed the rise to higher allocation funds, which saw S$1.8 billion in net inflows, up from S$1.5 billion in Q1.
Despite equity funds posting S$93.3 million in net outflows, Subramanian noted an increasing interest in Singapore equities. This trend could be due to a reversal of the historical trend of low allocations to the Singapore equity market by investors. The Equity Market Development Programme (EQDP) and new funds are also contributing to these inflows.
Fund managers are increasingly allocating resources to small and mid-cap stocks, which are less liquid but offer broader returns. However, Subramanian cautioned that larger funds may struggle to maintain stable returns in such a narrow category. Meanwhile, fixed-income funds experienced net outflows of S$288.9 million in Q2, up from S$97.2 million in Q1, due to market volatility.
Despite this, Singapore bonds remain attractive due to their lower volatility compared to US or global fixed income options.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
