Now that the global economy appears to be on the road to recovery, investors are gradually beginning to step off the sidelines and take on more risk, as markedly proven by fund flows. Money market fund assets surged to $3.9 trillion in March, but have since fallen back to $3.6 trillion. Meanwhile, investors steadily withdrew $259 billion from equity funds between June 2008 and March, but in the past four months, they have since have moved $50 billion back in.

But it has been those money funds that have kept mutual fund investors appeased in the downturn. Safe investments like cash and money funds did a fantastic job of protecting assets during the recent bear market when the average equity fund lost more than 30%.

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