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In 2025, the Israeli capital market thrived, with mutual funds raising approximately 70 billion shekels, reflecting substantial positive net inflows, contrasting sharply with significant outflows faced by the leading fund manager, Kasm. Explore the dynamics of the market and investment trends.
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Israeli Capital Market, Mutual Funds, 2025 Financial Trends, Investment Insights, Economic Growth, Kasm, Financial News
Strong Performance in the Israeli Capital Market in 2025
Overview of Growth in Mutual Funds
The year 2025 proved to be exceptionally successful for the Israeli capital market, notably marked by a substantial influx of investments into mutual funds. Approximately 70 billion shekels were raised, with nearly all major fund managers reporting positive net inflows amounting to billions of shekels each. This positive trend reflects overall market confidence and robust investment activity during the year.
Kasm’s Unique Position
Amidst this bullish market environment, Kasm, a leading entity in the mutual funds sector operated by Phoenix, reported contrasting results. As of the end of 2025, Kasm managed an impressive total of 122.6 billion shekels but concluded the year with a net outflow of roughly 6 billion shekels. The withdrawals primarily stemmed from cash funds and traditional funds, highlighting challenges faced by the largest player in the industry despite overall sector growth.
Implications for Fund Managers
The flourishing capital market in 2025 also had positive ramifications for mutual fund managers following a tumultuous year in the markets. The optimistic outcomes underscore a significant recovery and suggest a stable outlook moving into 2026.
Broader Market Insights
Additional investment trends were noted for 2026, with expectations set for growth in various sectors, including the food and beverage industry, seen through notable ventures like Leumi’s investments in restaurants. The overall economic landscape indicates a continued focus on diverse financial opportunities and the expansion of investor appetites across various industries.
In summary, 2025 stands out as a year of remarkable growth for the Israeli capital market, characterized by substantial investments and a contrasting situation for Kasm. Stakeholders and investors alike will be closely observing market developments as we transition into 2026, anticipating further strategic investments and opportunities.
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