03/07/25 11:53:08

Funds: Flight to safety

Demand for relatively safe money market funds is rising on the Frankfurt Stock Exchange. As prices fell, many investors sold off their equity funds. Few seem to have confidence in the recent recovery.


3 July 2025 FRANKFURT (Börse Frankfurt). Despite – or perhaps because of – new records on many stock markets, investors are becoming increasingly cautious. Initial evidence of this can be seen in last month's order turnover. According to this, activity in money market/money market-related funds has risen sharply. Their share of total turnover of all active funds rose to 13.2 percent in June. In the first five months of the current year, the average was only 5.0 percent, and in May it was only 3.1 percent. The highest turnover of all investment funds was recorded by CB Geldmarkt Deutschland I A AD (LU0052221412), also a fund from this sector.

High interest in money market funds

According to Matthias Präger, this development is due to a significant increase in demand for money market funds. “We are seeing very high sales in this segment, almost exclusively on the buyer side,” explains the fund trader at Baader Bank. The FT AccuGeld AC EUR (DE0009770206) and the Franklin US Dollar Liquid Reserve Fund (LU0052767562) are also frequently purchased. Investors appear to be consciously accepting the currency risks involved. Since the beginning of the year, the euro's strengthening against the greenback has caused the fund's price to fall by more than 11 percent. A reversal in the exchange rate trend would, conversely, give the performance an additional boost.

Matthias Praeger

Matthias Präger 

Many smaller orders for real estate funds

It is also striking that five real estate funds are among the top 10 in the June sales ranking. Leading the way are hausInvest (DE0009807016) and grundbesitz europa (DE0009807008). However, the ratio between purchases and sales in this segment is largely balanced, reports Ivo Orlemann from ICF Bank. The trader sees many smaller orders on both sides of the market. The focus is also on Deka-ImmobilienEuropa (DE0009809566) and UniImmo: Europa (DE0009805515).

Ivo Orlemann

Ivo Orlemann 

Equity funds affected by stop-loss sales

Both traders describe June as a relatively quiet month. “There was exceptionally little activity,” explains Orlemann. Baader Bank's clients remained very active, at least during the most recent correction phase on the European stock markets. “We had quite high turnover during the downward trend,” says Präger. Triggered stop prices led to increased sales. He reports losses for DWS Deutschland (DE0008490962), DWS Top Dividende (DE0009848119), Dirk Müller Premium Aktien (DE000A111ZF1) and CT (Lux) European Smaller Companies 1E (LU1864952335). When the stock markets here also turned upward again, fund trading became much quieter.

Bond funds are back in demand

As a result, the share of equity fund sales fell significantly in June. At 38.4 percent, it was by far the lowest figure for the current year. The average had previously been over 45 percent. In addition to money market funds, bond funds also gained ground, albeit from a very low starting level. The share rose from 3.6 percent in the first five months to 7.8 percent in June. The Deutsche Floating Rate Notes (LU0034353002) was particularly in demand. It invests in government and corporate bonds with an average maturity of up to twelve months and has achieved a gain of 3.4 percent over the year.

Thomas Koch is a CEFA investment analyst, investment specialist for structured products, and certified certificate advisor. Since early 2006, he has been covering capital market events as a freelance journalist.

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