GRAPHIC-US equity funds attract inflows for fourth successive week

BY Reuters | TREASURY | 07:36 AM EST

Nov 29 (Reuters) - U.S. investors poured money into equity funds in the week ended Nov. 27, buoyed by the naming of officials for the new Trump administration and a fall in Treasury yields, which alleviated concerns about the prospects for growth stocks.

Investors bought $12.78 billion worth of U.S. equity funds, a sharp jump in net purchases from the around $3.03 billion worth a week earlier, LSEG Lipper data showed.

Trump selected fiscal hawk Scott Bessent for the role of U.S. Treasury Secretary last week, boosting market expectations that debt levels would remain under control in his second term.

The large-cap and small-cap funds segments drew inflows totaling $5.27 billion and $3.11 billion, respectively. Multi-cap and mid-cap funds, however, saw net outflows of $419 million and $137 million, respectively.

U.S. sectoral funds were in big demand, attracting about a net $4.72 billion, thanks to notable $2.08 billion, $990 million and $962 million net purchases in the financials, consumer discretionary and technology sectors, respectively.

U.S. bond funds remained popular for a 26th successive week, securing about $6.92 billion in net weekly inflows during the week.

Investors bought $3.01 billion of general domestic taxable fixed income funds for a 15th consecutive weekly net purchase. U.S. short-to-intermediate investment-grade funds and mortgage funds also attracted $1.53 billion and $1.48 billion, respectively, in net inflows.

Investors, meanwhile, sold around a net $2.37 billion worth of U.S. money market funds following the $26.82 billion net outflow in the prior week.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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