Investors Seek Safety of Money Market Funds in July

August 15, 2008 ( - Money market funds enjoyed a large inflow in July, as mutual funds as a whole posted a net inflow of $52 billion.

According to data from Strategic Insight, the net inflow to money market funds for the month reached $75 billion. Meanwhile, equity funds posted a net outflow of $27 billion.

In July, U.S. equity fund outflows totaled some $20 billion, while international equity fund outflows were only $7 billion. Year-to-date through July, all equity funds have experienced very modest net outflows of roughly $20 billion, Strategic Insight said.

Net bond fund inflows were $4.5 billion in July, with taxable bond funds drawing more net inflows than tax-free bond funds.

Exchange-traded funds (ETFs) pulled in roughly $9.4 billion in July across all asset classes. Slightly more than half of the inflows went to domestic equity ETFs.