June 24 (Reuters) - U.S. investors turned net buyers of equity funds in the week ended June 22, due to an increased interest in mega-cap growth firms after a selloff in the previous weeks due to fears of a recession.
According to Refinitiv Lipper data, investors purchased U.S. equity funds worth $11.38 billion after sales of $21.56 billion in the previous week. The weekly net buying during the reported week was the biggest since March 23.
The S&P 500 and the Nasdaq Composite, have both gained more than 3% this week, as investors were lured in by cheaper valuations, as the indexes down more than 20% this year.
U.S. large-cap funds recorded inflows of $15.19 billion, their biggest since at least July 2020. However, mid- and small-cap funds had outflows of $874 billion and $733 billion, respectively.
U.S. growth and value funds obtained inflows, amounting to $4.03 billion and $1.62 billion, respectively.
By sector, financials, metal and mining as well as industrials witnessed outflows of $776 million, $685 million and $584 million, respectively, while consumer staples obtained inflows of $500 million.
Meanwhile, U.S. bond funds booked a third weekly net selling, worth $12.38 billion, which was a 34% drop in outflows from a week ago.
Investors sold U.S. taxable bond funds and municipal bond funds of $11.37 billion and $1.84 billion, respectively.
U.S. general domestic taxable fixed income funds and high yield funds posted outflows worth $3.99 billion and $2.9 billion, respectively, but short/intermediate government and treasury funds obtained a second weekly inflow valued at $1.95 billion.
Meanwhile, investors withdrew $2.77 billion out of money market funds, compared with the $8.59 billion worth of net selling in the previous week.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Amy Caren Daniel)
