Investors poured a record $246 billion into mutual funds and exchange-traded funds in the first quarter, according to industry tracker, Strategic Insight. These flows broke the previous all-time quarterly flow record of $173 billion, set in Q1 2012.

Long-term stock and bond funds captured $193 billion in Q1 while ETFs collected $53 billion.

“As investors move from the side line, we observe two Great Rotations in parallel and both should persist,” Avi Nachmany, SI’s Director of Research said, in a release.

“One prominent rotation is along the traditional risk curve with money flowing to stock investments. The other is from un-invested cash and into income vehicles, anchored by a semi-permanent state of investment anxiety by many, as well as by the demographic of wealth. Both such foundations of the insatiable search for income will continue to drive demand for conservative investment among the population nearing retirement.”

 

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