Mutual funds saw net outflows totaling $3.9 billion in July, reports the Financial Research Corp., Boston.

That was a sharp turnaround from net inflows of $27.9 billion reported by the research firm in July 2007.

International-global equity funds accounted for the largest share of the outflows, losing almost $7.6 billion more than they took in for the month. A year earlier, the international-global sector had net inflows of $17.8 billion.

Domestic equity funds saw net outflows of about $3.5 billion, compared to net inflows of $3.9 billion in July 2007. Corporate funds saw outflows of $648 million, compared to net inflows of $3.3 billion a year earlier.

In contrast, FRC reports that government bond funds had a net intake of over $4 billion in July, up from a net intake a year earlier of $848 million. Tax-free bond funds took in $2.2 billion than they lost for the month, well up from their inflow of $203 million a year earlier.

International bonds had net inflows of about $1.6 billion in July, down slightly from inflows of around $1.9 billion a year earlier.