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

New York (Jun 4)  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.

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.

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

Reuters