Investor confidence in the financial markets is slowly improving, as a recent report showed equity mutual fund flows hit their highest level in more than a year.

Investors added an estimated $19.5 billion to equity funds in June, according to Denver-based fund-tracking firm Lipper. That represents the largest monthly inflow since the nearly $29 billion inflow in March 2002. Overall, mutual funds took in $44 billion in assets in June. Still, the buying was not overly optimistic, as the types of funds chosen for investment reflected what Lipper described as "broad underlying caution."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.