Long-term mutual fund inflows fell to $14.1 billion in May, down from $24.1 billion in April and the smallest haul for the year to date, according to Kevin McDevitt, Editorial Director at Morningstar.

According to McDevitt, taxable-bond funds showed the greatest decline from inflows in April of $16.9 billion to $7.7 billion in May. Also, the two most popular categories, intermediate-term bond and high-yield bond, experienced “significant drops in demand”.

“Investors didn't turn to money market funds either,” wrote McDevitt. “Although money market funds reversed four consecutive months of outflows, inflows were a negligible $1.4 billion. U.S.-stock funds turned in their 13th consecutive month of outflows.’

On a bright note, Municipal-bond inflows doubled from April's $2.4 billion to about $5 billion, led by $1.3 billion into high-yield muni funds.

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