March Money Floods Equity Funds
Some $29.28 billion in new money flooded into stock funds, at the expense of money market funds as investors, anticipating a pick-up in the stock market, sold off their cash positions.
The inflow into equity funds was significantly higher than the $5.40 billion that the asset class attracted in February. In March:
- domestic funds saw inflows of $26.42 billion, compared with the $8.27 billion that trickled in, in February
- those that invest overseas had inflows of $2.85 billion, comparable to the previous month’s $2.86 billion.
Among the other asset classes:
- fixed income funds attracted $6.80 billion, down from February’s $10.71 billion inflow
- hybrid funds brought in $3.39 billion, compared with an inflow of $2.34 billion in February
- some $53.05 billion flowed out of money market funds in March, compared with an outflow of $5.55 billion the previous month.
Of the March outflow, funds that are offered primarily to institutions had an outflow of $34.51 billion, while those offered primarily to individuals had an outflow of $18.54 billion.
The survey comprises data reported to ICI from 4,793 stock funds, 490 hybrid funds, 2,096 bond funds, and 1100 money market funds.
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