Investor caution ahead of the release of minutes from the Fed's latest meeting also hit appetite for equities.
Refinitiv Lipper data showed investors offloaded a net $20.72 billion worth of U.S. equity funds, compared with net withdrawals of $5.56 billion the previous week.
Data released on Thursday highlighted a tighter jobs market as U.S. private payrolls increased by more than expected in December, fuelling further worries over inflation.
U.S. growth funds suffered a seventh straight week of net outflows at $7.12 billion, while withdrawals from value funds were $2.49 billion.
Data showed tech, healthcare and financial sector funds recorded outflows of $776 million, $485 million and $484 million, respectively.
Outflows from U.S. bond funds eased to a 16-week low of $51 million, the data showed.
U.S. taxable bond funds had their first weekly inflow in eight weeks, at $80 million, but municipal bond funds suffered a fifth weekly outflow, totalling $2.01 billion.
Investors purchased U.S. short/intermediate government & Treasury funds of $3.93 billion, marking their biggest weekly net buying since Sept. 28, although high-yield, and short/intermediate investment-grade bond funds faced outflows of $1.96 billion and $1.26 billion, respectively.
Money market funds had inflows for a second straight week, which amounted to a net $69.46 billion.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Alexander Smith)
