Inflows into Equity Funds Continue Steady Trend – Deutsche Bank

Investing.com reports that equity funds experienced significant inflows of $25.4 billion last week, with no indication of a slowdown, according to analysts at Deutsche Bank.

In their note to clients, the analysts highlighted that these funds, which primarily focus on trading stocks, have now accumulated a total of $325 billion in inflows since mid-April and $525 billion since last November.

During the past week, U.S. equity funds attracted substantial inflows of nearly $11 billion, although this figure was slightly lower than the previous week. Stock prices have reached new record highs on Wall Street, encouraged by traders’ increased risk appetite following the U.S. Federal Reserve’s earlier decision to implement a significant 50-basis point interest rate cut.

Chinese equity funds also saw a noteworthy surge, with inflows amounting to $8.2 billion in the week ending last Friday. This increase was driven by China’s announcement of new stimulus measures aimed at revitalizing its economy.

In terms of sector performance, consumer goods experienced the largest weekly outflow, totaling $2 billion, marking the most significant withdrawal since February 2014. The financial sector also faced its third consecutive week of outflows, losing $800 million. Other sectors, including energy, utilities, real estate, industrials, and technology, also reported outflows.

Conversely, inflows into bond funds, which invest in debt securities, slowed to a three-week low of $12.7 billion. However, analysts noted that these inflows remained robust overall.

Additionally, money market funds saw substantial inflows of $129.1 billion last week, the highest in 18 months, indicating a strong interest in short-term securities that typically offer higher yields than other cash products.