Assets in Money Market Funds

Money Market Balances

Source: Investment Company Institute

After reaching all-time highs last week, investors in money market funds withdrew a small amount this week. In the week ended Jan. 24, investors removed $2.60 billion from money market funds, bringing the total to $1.958 trillion, according to Investment Company Institute. Institutional and retail investors went separate ways in the period. While the net total was a decrease from last week's revised $1.961 trillion in assets, institutions accounted for a $3.51 billion inflow of funds this time period. Retail investors accounted for the greater value in outflows, withdrawing $6.11 billion from money market funds.

Related Metrics Cash as a Percentage of Mutual Fund Portfolios Mutual Fund Inflows/Outflows ** Back to Metrics **

Why This Metric Matters Cash levels can rise in money market funds for any number of reasons. Investors may move money out of stocks and into money market funds for fear of market conditions. Perhaps they're just taking some profits in the midst of a bull market. Or they may be setting aside money for specific purchases, like a new home or a car. Whatever the reason, money market funds represent assets that could eventually make their way back into the stock market or the broader economy. Short term, a sharp spike in money market assets is not seen as a good sign for stocks, as it's money not finding its way into equities. But longer term, these funds represent a potential source of assets that could help fuel the market, or at least economic growth.

How Often Updated on TSC Weekly, on Thursday evening

Historical Info This metric has been followed by Investment Company Institute, the mutual fund trade group, since 1974. Money market balances reached a record high of $1.870 trillion in December 2000.

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