More equity funds reported inflows for the week ending April 18 than in any week since the end of January, according to AMG Data Services of Arcata, Calif.
Equity funds experienced a total of $1.6 billion in inflows this past week, with most of that coming in the domestic growth sectors, according to AMG.
On Wednesday, the Federal Reserve Board cut short-term interest rates by a half point, which drove up overall stock prices dramatically. That, along with the relatively strong performance of equities in early April may have triggered the inflows, said Kunal Kapoor, senior fund analyst at Morningstar of Chicago. Still, the inflows are not high enough to indicate a complete turnaround for equity funds, he said.
While domestic equity funds attracted assets, international equity funds saw outflows of $897 million in the same week, according to AMG. Money-market fund assets also decreased, falling $30.89 billion in the week ending Wednesday, according to the Investment Company Institute of Washington, D.C.