In spite of the eight-day war rally in the middle of last month that drove major equity indexes up 11%, investors are still exercising caution, Lipper reported last week. Bond funds remain the strongest-selling sector among mutual funds.
Fixed income funds took in $9.8 billion during March, while equity funds had net flows of $1 billion. However, because of a loss of $26.9 billion from money market mutual funds, primarily due to their returns of less than 1%, the industry lost $16 billion from all types of funds during the month. Forthcoming data on the month will probably show that investors slowed their equity fund redemptions, rather than rushing to buy stock funds, Lipper said.