US equity funds record biggest weekly outflow in five weeks

(Reuters) - U.S. equity funds witnessed massive outflows in the week to May 3, undermined by uncertainty over U.S. debt ceiling, caution about the Federal Reserve's policy meeting and a sell-off in regional bank shares.

Investors exited a net $15.61 billion worth of U.S. equity funds during the reported period, their biggest weekly net selling since March 29, Refinitiv Lipper data showed.

Graphic: Fund flows: U.S. domiciled equities, bonds and money market funds - https://www.reuters.com/graphics/USA-FLOWS/USA-FLOWS/lgvdkxleapo/chart.png

U.S. large-cap funds lost $7.27 billion in net selling, the most since March 29, while small- and mid-cap funds saw outflows of $1.84 billion and $1.29 billion, respectively.

Among sector funds, tech and financials witnessed outflows of a net $706 million and $389 million, respectively, but investors poured in $432 million into consumer staples.

Graphic: Fund flows: U.S. equity sector funds - https://www.reuters.com/graphics/USA-FUNDS/USA-FUNDS/gkplwjxzyvb/chart.png

Meanwhile, U.S. money market funds drew a net $31.37 billion worth of inflows, compared with $47.72 billion in net purchases in the week before.

U.S. bond funds, however, saw net outflows of $1.36 billion. Investors pulled out from U.S. bond funds for the third week in a row.

U.S. general domestic taxable fixed income funds witnessed outflows of $1.49 billion. U.S. high yield funds lost $1.77 billion in their first weekly net selling in five weeks.

Meanwhile, U.S. short/intermediate investment-grade funds obtained a net $1.92 billion in their biggest weekly inflow in 10 weeks. Investors also purchased $1.07 billion worth of U.S. government bond funds.

Graphic: Fund flows: U.S. bond funds - https://www.reuters.com/graphics/USA-FUNDS/USA-FUNDS/akpeqnalapr/chart.png

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shilpi Majumdar)