U.S. equity funds attracted $12.6 billion in the week through November 5 — their largest inflow since early October — as investors capitalized on a brief market correction and stayed bullish on AI-driven corporate deal activity, according to LSEG Lipper.
🔹 Where Investors Are Positioning
- 💼 Large-cap funds: +$11.9B — strongest weekly inflow since Oct 1.
- 📈 Small-cap funds: +$114M, signaling a cautious shift into broader growth.
- ⚖️ Mid-cap funds: –$1.17B outflow.
- 💻 Tech sector: +$2.38B — largest in five weeks, continuing AI-led enthusiasm.
- 🏦 Financials: –$1.27B outflow amid margin compression and policy uncertainty.
“Investors are using market dips to rebuild exposure to innovation-heavy U.S. equities — especially those tied to AI and automation,” analysts noted.
🔹 Fixed Income & Cash Positioning
Demand for bond funds moderated to a five-week low (+$4.47B), while money market inflows surged to $118B, the highest in 11 months, underscoring cautious cash positioning amid lingering rate uncertainty.
- 🏛️ Investment-grade bonds: +$2.46B
- 💵 Taxable fixed income: +$2.44B
- 🏙️ Municipal debt funds: +$1.27B
🔹 The Takeaway
The data paints a picture of measured optimism:
investors are rotating into AI-led growth while balancing liquidity and fixed income exposure ahead of year-end positioning.
The U.S. remains the epicenter of capital flows, with AI innovation driving both institutional conviction and retail participation in equity markets.
“AI remains the new growth narrative — and investors are not sitting it out.”