U.S. equity funds see inflows, bond funds continue to attract demand - Reuters

Published 14/03/2025, 12:28
© Reuters.

Investing.com -- For the week ending March 12, U.S. equity funds saw an increase in inflows, according to data reported by Reuters. This trend was driven by some investors who were encouraged by a weaker Consumer Price Index (CPI) reading, even as concerns lingered about the potential economic impact of President Donald Trump’s trade policies.

During the week, net purchases for U.S. equity funds reached $4.67 billion. However, this number is a decrease from the strong inflows seen in February, which amounted to around $9 billion. The first two weeks of March have seen a combined outflow of $4.81 billion, indicating a slowdown in the inflow rate.

Large-cap funds in the U.S. experienced a net inflow of $8.78 billion, marking the fifth consecutive week of net inflows. Multi-cap funds also saw additions worth $479 million. However, investors moved away from small-cap and mid-cap funds, with outflows totaling $1.32 billion and $1.22 billion, respectively.

Sectoral funds experienced a second consecutive week of outflows, with net sales reaching $3.25 billion. Investors pulled out of tech, communication services, and consumer staples sector funds, with outflows totaling $1.59 billion, $423 million, and $340 million, respectively.

U.S. bond funds continued to be in high demand, recording a net inflow of $8.44 billion during the week. This marks the tenth consecutive week of net inflows into bond funds. Short-to-intermediate government and treasury funds witnessed a strong net inflow of $5.39 billion, the largest weekly net inflow since March 2023.

Meanwhile, loan participation funds saw a net withdrawal of $1.13 billion, following ten consecutive weeks of net inflows. U.S. money market funds experienced $14.62 billion worth of net sales, marking the second weekly outflow in the past six weeks.

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