In spite of the continued market rally in May, equity mutual funds attracted $8.2 billion in the month, down from the $14 billion in April,
Bond funds continued to attract a fair amount of money, taking in $9.4 billion. But money market funds lost a whopping $15.9 billion. Overall, for all types of mutual funds, the industry netted $1.7 billion during the month.
As to why the enthusiasm for equity funds waned, Lipper analysts theorized that Aprils inflows were so strong due to the end of the war, thereby going through a so-called "relief rally."
"If you could bottle dividends right now, they would be flying off the shelf," said Lipper Senior Research Analyst Don Cassidy.
