US equity funds receive big inflows as investors downgrade Omicron Impact -Lipper | Investing news

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(Reuters) – US equity funds received robust inflows for the second week in the seven days ended December 29 as investors welcomed indications that the Omicron variant coronavirus will not cause a major hit to the economy.

According to data from Refinitiv Lipper, US equity funds attracted $19.43 billion in net purchases, compared to their $2.3 billion average weekly inflow they received this year.

Graphic: Fund flows: US equities, bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/myvmnbnqqpr/Fund%20flows%20U.S.%20equities%20bonds%20and%20money%20market%20funds .jpg

Wall Street’s main indices posted solid gains this week. The S&P 500 and Dow hit record highs on Thursday as some early studies of Omicron cases suggested a lower risk of hospitalization and allayed concerns about the variant’s impact on the economy.

Sentiment was also boosted by reports suggesting that US retailers’ holiday sales were strong.

Both US growth and value funds posted their second consecutive week of inflows, with net purchases of $7.69 billion and $2.36 billion, respectively.

Chart: Fund Flows: US Growth and Value Funds – https://fingfx.thomsonreuters.com/gfx/mkt/movanwnbzpa/Fund%20flows%20US%20growth%20and%20value%20funds.jpg

Among sector funds, financial and real estate funds saw inflows of $1.2 billion and $785 million, respectively, although technology and consumer funds saw outflows of $592 million and $413 million, respectively.

Graphic: Flows of Funds: US Equity Sector Funds – https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgbgqkpb/Fund%20flows%20US%20equity%20sector%20funds.jpg

US bond funds secured $6.31 billion in inflows, the largest weekly inflow in seven weeks.

Investors bought $5.27 billion in taxable U.S. bond funds, the largest weekly inflow since Nov. 10, while municipal bond funds posted net purchases of $1.13 billion.

US general domestic taxable fixed income funds recorded inflows of $1.93 billion, the largest in seven weeks. US short/intermediate government and treasury funds and inflation-linked funds rose $929 million and $637 million, respectively.

Graphic: https://fingfx.thomsonreuters.com/gfx/mkt/zdvxoqojepx/Fund%20flows%20US%20bond%20funds.jpg

Meanwhile, US money market funds saw net purchases worth $32.71 billion, their largest weekly inflow since Oct. 27.

(Reporting by Gaurav Dogra in Bengaluru; Editing by Grant McCool)

Copyright 2021 ThomsonReuters.

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