Money-market funds have attracted $106 billion so far in August. This has pushed their total assets to a record $6.24 trillion as of August 21, according to the Investment Company Institute. The increase is largely due to retail investors who are placing their money in these funds in anticipation of future interest rate cuts by the Federal Reserve.
In the week ending August 21, US money-market funds received an additional $24.9 billion. This brings the total inflows for August to around $106 billion, setting new records for assets held in these funds. Currently, there is $6.24 trillion in money-market funds.
Most of the recent increase in money-market fund assets came from retail investors, who contributed $21.4 billion. Institutional investors added around $3.45 billion, but this was partly offset by a move away from prime funds. This shift is due to upcoming Securities and Exchange Commission regulations, which have led to some funds closing and investors adjusting their investments.
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