Assets in Money Market Funds

Money Market Cash

Source: Investment Company Institute

Investors put more than $15.3 billion into money market funds during the week ended May 16, the Investment Company Institute reported Thursday. Money market cash now stands at $2.080 trillion. In the latest period, retail investors pulled nearly $1.4 billion out of money market funds. Institutions, meanwhile, put almost $16.7 billion into 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 $2.033 trillion in February 2001.

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