NEW YORK: US money market funds lured the biggest inflow in a year, in the week ended April 28, on caution ahead of a US Federal Reserve policy meeting, with investors also anxious about the speed of the equity rally in recent weeks.
According to Refinitiv Lipper, investors purchased $60.5 billion in US money market funds in the week, the highest since April 2020.
Analysts said fears about rising inflation and the prospect that the Federal Reserve might unwind its quantitative easing measures curbed inflows into risky assets in the week.
The data showed US equity funds had outflows of $22 billion, the biggest since February 2020.
US equity indexes - S&P 500 index and Nasdaq - hit fresh all-time highs this week, helped by strong earnings from tech companies such as Apple and Facebook in the first quarter.
Meanwhile, US bond funds secured $8.2 billion worth of money, the smallest inflow in five weeks.
The inflow was mainly led by U.S general domestic taxable fixed income funds, which received $3.68 billion, the biggest in 14 weeks, and short- and intermediate-term investment-grade funds, which attracted $3.42 billion.
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