Both bond and equity funds saw overall inflows in the week to 18 January, of $4.35bn and $2.8bn respectively, while money market funds fell out of favour with redemptions of $11.93bn, according to EPFR Global.
"Several fund groups that have been on thin rations for lengthy periods of time saw significant amounts of thin money during the third week of January," EPFR Global said.
China’s latest macroeconomic data has suggested slower, more broadly based growth, which has in turn taken some of the pressure off prices and prompted over $600m to flow into China Equity Funds, with most of that coming from institutional investors.
In other emerging market fund groups, GEM Equity Funds took in over $1bn during the week for the second week running and flows into BRIC funds hitting a seven-week high.
US Equity Funds continued to dominate flows into developed market equity funds, building on a trend which began at the tail end of last year, while German Equity Funds matched their longest redemptions streak since the second quarter of 2008.
European Bond Funds benefited from the growing consensus the eurozone will get to grips with its debt crisis this year, witnessing their biggest inflow since the second week of July 2009.
Emerging Market Bond Funds, High Yield Bond Funds and US Bond Funds also took in fresh money as investors stepped up their search for yield, EPFR Global said.
