June 18 (Reuters) – U.S. equity funds lured capital inflows
in the week to Wednesday, after two weeks of outflows, as
optimistic investors bet on recovery hopes, ignoring higher
inflation levels.
Data from Refinitiv Lipper showed investors bought $386
million worth of U.S. equity funds in the week to June 16, with
caution ahead of the Federal Reserve’s policy meeting outcome,
capping further inflows.
U.S. equity value funds attracted $1.7 billion worth of
inflows, while growth funds received a net $1.85 billion, after
facing outflows for the past two weeks.
Among equity sectors, U.S. real estate funds attracted
purchases worth a net $528 million, in their third consecutive
week of net inflows, bolstered by a surge in housing prices in
the United States.
Wall Street’s main indexes were jolted earlier this week
after the Fed unexpectedly signaled it could begin tapering its
massive stimulus sooner than expected, setting the benchmark S&P
500 on course to snap a three-week winning
streak.
The U.S. money market funds had $26.4 billion in outflows,
the biggest in nine weeks.
Also, investors purchased a net $4.3 billion in U.S. bond
funds, the lowest in three weeks.
Both U.S. taxable bond funds and municipal bond funds
witnessed the lowest net buying in three weeks at $2.7 billion
and $1.65 billion, respectively.
U.S. short and intermediate investment-grade funds attracted
$2.63 billion in inflows, a 12% increase over the last week.
Inflation-protected bond funds, with inflows of $0.8 billion,
also lured investors for the seventh straight week.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in
Bengaluru; Editing by Rashmi Aich)
