(Reuters) – U.S. investors were net buyers of equity funds for a fifth successive week in the seven days to March 27 as they maintained expectations of three interest rate cuts this year, although caution ahead of an inflation report capped purchases.
According to LSEG data, investors purchased a net $2.6 billion in U.S. equity funds during the week, which was their lowest weekly net buying since March 6.
Personal consumption expenditures (PCE) data on Friday showed U.S. prices increased moderately in February, supporting the view the Federal Reserve will cut interest rates in June.
U.S. large cap funds received $6.13 billion during the week after net purchases of $15.3 billion in the prior week.
Small-cap funds also gained $1.45 billion but multi-, and mid-cap funds saw outflows of $2.86 billion and $378 million, respectively.
Investors purchased tech and industrials sector funds of about $1 billion and $907 million, respectively on a net basis. The healthcare sector, meanwhile, faced $802 million worth of net selling.
U.S. bond funds saw net purchases of $3.47 billion, reversing $1.47 billion in outflows in the previous week.
U.S. short/intermediate investment-grade funds gained $1.88 billion, the biggest inflow in three weeks. Loan participation, and general domestic taxable fixed income funds also secured $755 million and $506 million, respectively.
Money market funds witnessed $12.08 billion worth of net selling, the second weekly outflow in a row.
(Reporting by Gaurav Dogra in Bengaluru; editing by Barbara Lewis)
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