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 Monday. Bond fund inflows remained 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 because their returns have dropped to less than 1%, the industry lost $16 billion from all types of funds during the month.

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