Reuters reports that investors retreated from stocks in May. According to the Lipper research the net inflow to equity mutual funds was $10.5 billion, around 60% less than in April. Don Cassidy, a Lipper senior research analyst, said in the report that the decline in stock prices that started on May 10 hurt net flows to stock funds and helped boost the flows into money market funds, according to Reuters.
All of the major US stock market indices declined in May, with the Dow Jones Industrial Average falling 1.8%, the Standard & Poor’s 500 Index losing 3.1% and the NASDAQ Composite Index declining 6.2%, Reuters notes.
An estimated $7.6 billion went into world stock funds – about 72% of the total stock fund inflows.
However, emerging market funds saw net outflows of more than $900 million.
Meanwhile, bond funds had net outflows of $1.1 billion in May, Lipper data showed.