US equity funds notch up biggest weekly inflow in seven weeks

Aug 12 (Reuters) – Investors were net buyers of US equity funds in the week to Aug. 10, on bets that the Federal Reserve would slow the pace of its interest rate hikes as inflation concerns subside.

Refinitiv Lipper data showed USD 4.21 billion in net purchases of US equity funds, their biggest weekly inflow since June 22.

Data released on Wednesday showed US consumer prices were unchanged in July, prompting some traders to cut bets to a 50 bps hike at the Fed’s September meeting.

Some market participants were earlier anticipating a third straight 75 bps interest rate increase in September.

US small-cap funds attracted USD 192 million, while large-cap funds had purchases of USD 7.6 billion, the biggest inflow since May 25. Mid-cap funds recorded USD 294 million of net selling.

Data for growth and value funds showed investors acquired funds totaling USD 2.46 billion and USD 26 million respectively.

US consumer staples and healthcare funds notched up inflows of USD 487 million and USD 345 million respectively, but tech funds saw outflows of USD 852 million.

Meanwhile, bond funds witnessed inflows of USD 1.15 billion, as purchases continued for a second straight week.

US bond fund purchases were broadly into government funds, with US government and treasury fixed income funds, and US short/intermediate government and treasury funds attracting USD 1.88 billion and USD 540 million, respectively.

Money market funds had disposals of USD 12.19 billion as net selling continued for a second week.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Alexander Smith)