U.S. Equity Funds Experience Record Outflows Amid Tariff Concerns

Investors withdrew $33.53 billion from U.S. equity funds, marking the largest net outflow in three months due to concerns over U.S. tariff policies and the Federal Reserve's monetary policy. Large-cap, small-cap, multi-cap, and sectoral funds experienced significant outflows, while government and treasury funds continued to attract inflows.

Investors have shown apprehension towards U.S. equity funds, withdrawing an unprecedented $33.53 billion in the week leading up to March 19. This marks the largest net outflow in three months, reflecting worries about U.S. tariff policies and a cautious stance ahead of the Federal Reserve's monetary policy announcement.

During this period, the Federal Reserve opted to keep its benchmark overnight interest rate unchanged, while suggesting potential interest rate cuts later in the year alongside forecasts of slower economic growth and rising inflation rates. U.S. large-cap funds witnessed net sales of $27.38 billion as a three-week buying trend came to an end.

Sectoral funds, particularly in technology, communication services, and healthcare, recorded substantial outflows, while short-to-intermediate government and treasury funds continued drawing investors' attention, securing a consistent weekly inflow over the past 13 weeks.

(With inputs from agencies.)