Within that scenario, tax-free money market funds saw inflows zoom to the second highest level of inflows for the year. The highest flow of funds into money markets occurred the week ended January 9.
 
Investments in municipal bond funds also picked up within the overall down scenario for mutual funds. Investors more than doubled their flows into muni bond funds, which have now seen positive flows for 42 out of the last 45 weeks.
 
So, whether the ICI’s assessment is correct may be in question based on the past week’s reversal of flows into both money market funds and muni bond funds. The highest flow of funds into money markets may mean that equities investments are still not compelling. The surge of the equities markets lost its steam by mid-March after the largest inflows to money markets occurred mid-January.

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