U.S. investors shun equity funds on inflation worries – Lipper

FILE PHOTO: FILE PHOTO: A Specialist trader watches his chart while working on the floor of the New York Stock Exchange

(Reuters) – U.S equity funds faced outflows in the week to June 2, on concerns over rising inflation and the prospect of an earlier withdrawal of the Federal Reserve’s stimulus support.

Investors sold a net $3.59 billion worth of U.S. equity funds in the week, compared with inflows worth $6.8 billion in the previous week.

Fund flows into U.S. equities bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/oakvebomdpr/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market.jpg

Investors sold a net $7.42 billion in growth stocks, which was the biggest in five weeks. However, value stocks lured an inflow of $2 billion in the week, the data showed.

Among sector funds, healthcare and tech sector funds faced outflows of about $800 million each, while financial sector funds had an inflow of $2.55 billion, which was the biggest in 14 weeks.

On the other hand, U.S. money market funds had an inflow of $6 billion, as investors turned cautious ahead of U.S. jobs data for clues to the Fed’s plans for policy in the coming weeks and months.

Meanwhile, investors purchased a net $8.1 billion in U.S. bond funds, the biggest in four weeks. U.S. taxable bond funds had an inflow of $7.57 billion, while U.S. municipal bond funds attracted $1.37 billion.

Flows into U.S. equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/jbyvrgqqope/Flows%20into%20U.S.%20equity%20sector%20funds.jpg

Fund flows into U.S. growth and value funds https://fingfx.thomsonreuters.com/gfx/mkt/xlbvgkllnvq/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg

Inflation-protected bond funds also received inflows of $923 million, seeing the fifth straight week of buying.

Flows into U.S. bond funds https://fingfx.thomsonreuters.com/gfx/mkt/rlgvddookvo/Flows%20into%20U.S.%20bond%20funds.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Jonathan Oatis)