Market Insights: Retail flows

Retail flows are traditionally perceived as a contrarian signal of where the not-so-smart money in the market is moving. Data from EPFR reveals that this may not be entirely the case, though.

Since 2005, more than $3 trillion have been redeemed from US equity fund retail share classes. Over the same period, these funds have achieved a whopping 280% collective gain.

During this session, Quantitative Analyst Azalea Micottis showcased the potential of retail flows using EPFR Fund Flows data, covering the following use cases:

  • Using retail flow data for country selection
  • Using retail flow data for asset class selection
  • Using retail flow data for regional selection

 

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