The $37.8 billion of inflows into long term mutual funds in April were off the pace set in January, which showed record inflows. According to Morningstar, inflows last month were led by taxable bonds at $19.4 billion, followed by international equities at $8.4 billion. Alternative investments showed the strongest growth relative to assets. U.S. equities showed tepid growth at $895 million, with money market funds losing more than $14 billion.
Investors preferred passive funds over active funds by a wide margin ($9.6 billion vs. outflows of $5.2 billion) and value funds over growth funds, driven by a desire for dividends. The top four funds ranked by inflows in April were Vanguard funds, followed by three Pimco funds.
