Bond funds continue their run amid volatile equity flows

A net $14.6 billion was redeemed from institutional class mutual funds during July as fixed-income funds saw net inflows of $17 billion and equity funds had net outflows of $2.4 billion. July was the seventh consecutive month of positive net flows for bond funds after a $70 billion investor exodus in the fourth quarter of 2018. The fund group's cumulative flows have gained momentum in 2019 as bond markets have rallied on falling interest rates and equity market volatility.

Equity flows have been more volatile so far in 2019. The net $21.4 billion of inflows through July 31 are largely the product of January's $29.1 billion flood. Additionally, the bulk of the net inflows have been into passive U.S. equity funds, particularly S&P 500-based index funds.

Vanguard Group and Fidelity Investments led money managers with net inflows of $30.7 billion and $29.5 billion year-to-date, respectively.