Large caps drive second week of US equity fund inflows

Investors directed significant capital into United States equity funds during the week ending April 1, marking the second consecutive week of net purchases. This trend emerged as geopolitical tensions in the Middle East appeared to stabilize briefly following signals from the administration regarding military objectives. According to data provided by the LONDON STOCK EXCHANGE GROUP through its Lipper service, net inflows into U.S. equity funds reached $7.05 billion. While positive, this figure represents a deceleration from the substantial $36.95 billion in net purchases recorded during the previous week. The market sentiment shifted toward risk aversion early in the following week. This change followed renewed threats concerning civilian infrastructure and the strategic Strait of Hormuz, which heightened concerns regarding Iran. Large-cap equity funds remained a primary driver of growth, attracting $14.67 billion in their second straight week of gains. Conversely, other segments faced selling pressure, with small-cap funds seeing $1.34 billion in outflows, mid-cap funds losing $1.09 billion, and sectoral funds experiencing a $3.82 billion decline. Fixed-income markets also saw a reversal in momentum. Bond funds recorded their first weekly net sales since late 2025, totaling $10.17 billion. Within this category, short-to-intermediate investment-grade funds saw a $5.92 billion disposal, ending an 18-week streak of inflows. Meanwhile, money market funds continued to attract interest, securing $5.88 billion in what was their sixth weekly inflow over the last seven weeks.