Assets in Money Market Funds

Money Market Balances

Source: Investment Company Institute

After setting a record last week, investors in money market funds decided to do it again this week. In the week ended Jan. 17, investors pumped another $19.46 billion in money market funds, bringing the total to $1.955 trillion, according to Investment Company Institute (ICI). This week's gains come on top of last week's record-setting inflows, in which assets enjoyed their biggest one-week jump in three years. And, just as last week, institutions represented the bulk of money market inflows. Institutions accounted for $12.8 billion of this week's total and retail investment accounted for $6.66 billion.

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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