Fueled by strong inflows into equity funds during the month of June, mutual funds took in a net $47.2 billion, according to Merrill Lynch. Equity funds attracted $18.7 billion, bond funds $5.4 billion and money market funds $23.2 billion.
This is the fourth straight month that equity funds have attracted net inflows, and may portend the market turnaround is for real. Investors split their money evenly between growth and non-growth funds, continuing a trend of the past three months.
The inflow into bond funds seems to be slowing, Merrill said, although investors interest in corporate and high-yield bonds picked up, with this category taking in $4.8 billion. Institutional investors drove most of the inflow to money market funds during the month.
Of all types of sector funds, technology funds took in the most money, reaping $224 million. That was followed by $184 million into financial sector funds and $163 million into utility funds.