{
  "id": 12665814,
  "title": "Money market funds surge in popularity as investors grapple market volatility",
  "url": "https://urgent.news/2026/10/07/money-market-funds-surge-in-popularity-as-investors-grapple-market",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T16:40:19.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/money-market-funds-surge-in-popularity-as-investors-grapple-market-volatility/"
  },
  "original_language": "en",
  "account": "Money market funds experienced a surge in popularity last month as investors steered clear of equities amid market uncertainty. UK investors allocated funds to money market options over stocks, aiming to weather ongoing economic and geopolitical tensions. In September, these funds attracted £417 million in inflows, marking the strongest performance since November 2025, according to Calastone's data.\n\nDesigned as low-risk investment vehicles, money market funds preserve capital instead of chasing aggressive growth through short-term debt from governments, banks, and companies. They offer less volatility and modest yield opportunities that traditional high-street banks cannot match. Analysts noticed significant interest in money market funds despite major developed and emerging markets delivering strong returns amidst volatility and concerns over AI stock valuations.\n\nThe FTSE 100 rose 5.1% since January, while the Nasdaq climbed 13.5%. Emerging markets, including the Kospi, also recorded substantial returns, surging 57.8%. \"While stock markets have delivered strong returns over the past year, some investors are choosing to keep a portion of their portfolio in cash-like investments that seek to deliver a yield while limiting volatility,\" said Kyle Caldwell, fund and investment editor at Interactive Investor. \"Others may be using money market funds as a temporary home for cash before deploying it into equities over time.\"\n\nThe uptick in capital in money market funds coincides with Chancellor John Healey's upcoming Autumn Budget. \"This month’s Budget is also likely to be a factor in driving rising outflows from equities. Speculation about higher taxes means some investors will be taking profits now,\" said Edward Glyn, head of global markets at Calastone. Glyn added that Budget concerns and volatility have made money market funds a \"safe haven,\" allowing investors to earn returns with minimal risk. \"All this shows that investors still want returns, but they are demanding more compensation for taking risk.\"",
  "summary": "Money market funds roared back to popularity last month, as investors continued to shun equities amid ongoing market uncertainty. UK investors allocated capital to money market funds in favour of stocks in a bid to ride out the ongoing economic and geopolitical tensions rocking financial markets. The funds attracted £417m of inflows in September, marking [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}