Investment funds in Portugal enjoy best 1H since 2021

The first half of 2025 has been the best since 2021 for investment funds in Portugal with bonds and securities most attracting investors and families with shares gaining ground in popularity.

In the first half of the year, investment funds attracted over €1.7Bn at a time when EU countries are preparing to issue fresh bonds, as well as investors making strong gains on the world’s stock markets despite the uncertainties from the trade war and conflicts in the Middle East and Ukraine.

The latest monthly report from the Portuguese Association of Investment Funds, Pensions and Patrimonies (APFIPP) for June saw a volume of subscription worth €792.1 million while the value of cash-ins stood at €305.1 million.

This brought a net positive balance of €442 million, slightly below the €462.5 million that funds attracted in May.

Euronext Lisboa attracted €44.8 million in national share funds which have enjoyed a strong performance so far this year.

In 1H the PSI index gained 17% in value and since then has increased in value by 20% with 10 out of the 15 listed companies enjoying a bullish performance.

The listed entities and companies making the most gains in Portugal was the bank BCP but the defence and energy sectors also did well.

However, paper companies like The Navigator Company suffered, pressured by the devaluation of the US dollar.

Overall, Lisbon hit decade highs and even managed to outdo Europe’s Stoxx50 and the US S&P 500.

Investors’ appetites in Portugal are following international trends. The first half was marked by the expectation that European countries would have to increase their issues of sovereign bonds to finance and beef up their defence capacities and infrastructures.

Within this context, short-term funds in euros (€486 million), bonds in euros (€427 million) and European market monetary funds (€426 million) were the ones that most attracted family savings in Portugal between January and June.

However, €26 million shied from international bonds, although there was a greater appetite for US shares (€27.5 million), above the €12.7 million that entered European share funds.

Given the attraction of savings and buoyant stock markets, assets managed by funds in Portugal grew to €22.7Bn – representing an increase of 22% in 2025. – the highest value since 2007.