Assets in money-market funds grew $10.22 billion in the week ended Tuesday, as investors put money into prime funds, which easily offset outflows from governments funds, according to iMoneyNet.
Cash rushed out of money-market funds in the first half of the year as investors sought higher returns, but the exodus has slowed substantially as stock-market volatility increased. Morningstar Inc. on Tuesday reported the sector had net inflows in August, the second consecutive month that has happened. The investment-research company said the renewed interest in the funds could be another residual effect of the greater risk-aversion stemming from May's "flash crash."
For the week ended Tuesday, total assets in money-market funds climbed to $2.816 trillion.
In this uncertain economy investors seem quite content holding their assets in money market accounts earning less than 0.5%. This is especially true after the flash crash in May. From Reuters: