According to data from LSEG Lipper for the week ending January 22, outflows from U.S. equity funds decreased significantly to $3.2 billion from the previous week's $8.26 billion. Large- and mid-cap funds experienced reduced outflows to $2.68 billion and $972 million, down from $4.35 billion and $1.57 billion, respectively. Multi-cap and small-cap funds saw net sales of $1.53 billion and $290 million, respectively.

On the other hand, U.S. sectoral funds had a notable increase of $2.74 million, the highest in a week since November 27, 2024. Investors favored financials, industrials, and tech sector funds with purchases of $998 million, $816 million, and $657 million, respectively, during the week.

Bond funds remained popular for the third consecutive week, with U.S. investors injecting a net $8.83 billion. General domestic taxable fixed income funds and municipal debt funds attracted $2.33 billion and $2.03 billion in inflows, respectively. Additionally, loan participation funds received a net $1.62 billion in the fourth consecutive week of purchases.

Money market funds also saw substantial investments, with a net $32.86 billion inflow, marking the fourth weekly increase in five weeks.