U.S. equities markets showed strong returns for the week, some of the best since 1998, according to Lipper research analyst Matthew Lemieux. This "made it hard for investors to stay on the sideline, as equity mutual funds saw weekly inflows of roughly $2.2 billion," he said in his weekly video report of March 30.
This was in stark contrast to the group’s previous week of outflows, according to Lemieux, their first in 16 weeks. Overall, mutual funds drew $6.5 billion in new flows, excluding ETFs.
Domestic equity funds were the clear winner, and they outpaced their non-domestic counterparts with inflows of $1.3 billion, he said.
"With the quarter ending, equity investors will look to upcoming earnings reports to see if they made the right move," Lemieux shared.
Taxable bond funds were the most popular group with net inflows of $3.6 billion and an overweighting towards corporate investment-grade products — up $1.5 billion, according to Lipper data.
Municipal bond funds experienced their 12th-consecutive week of outflows, sloughing off $385 million for the week.
"The good news is that this was the smallest amount of weekly outflows for the group since the exodus began in mid-November," shared Lemieux.
For the first week in four, money market funds posted net inflows with $1.1 billion.