June 4 (Reuters) - U.S equity funds faced outflows in the week to June 2, on concerns over rising inflation and the prospect of an earlier withdrawal of the Federal Reserve’s stimulus support.
Investors sold a net $3.59 billion worth of U.S. equity funds in the week, compared with inflows worth $6.8 billion in the previous week.
Investors sold a net $7.42 billion in growth stocks, which was the biggest in five weeks. However, value stocks lured an inflow of $2 billion in the week, the data showed.
Among sector funds, healthcare and tech sector funds faced outflows of about $800 million each, while financial sector funds had an inflow of $2.55 billion, which was the biggest in 14 weeks.
On the other hand, U.S. money market funds had an inflow of $6 billion, as investors turned cautious ahead of U.S. jobs data for clues to the Fed’s plans for policy in the coming weeks and months.
Meanwhile, investors purchased a net $8.1 billion in U.S. bond funds, the biggest in four weeks. U.S. taxable bond funds had an inflow of $7.57 billion, while U.S. municipal bond funds attracted $1.37 billion.
Inflation-protected bond funds also received inflows of $923 million, seeing the fifth straight week of buying.
Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Jonathan Oatis