The U.S. mutual market still hasn't fully recovered from the late 2018 downturn, but it has started the year in robust fashion.
U.S.mutual funds experienced 8.6 percent asset growth during January and February, according to a report by Cerulli Associates.
The report added that the ETF market has recouped losses from last year's downturn, passing the $3.72 trillion asset mark in February, when inflows totaled $23.2 billion—an all-time high. The sector also is ahead of the mutual fund market through February, with 10 percent asset growth, the Boston-based research firm said.
Net inflows added $36.7 billion to the mutual fund market in January and $29.2 billion in February, an infusion that came after 11 straight months of net negative flows stretching from February to December 2018, according to Cerulli's fund trend report.
Net flows have been most positive among fixed-income mutual funds, particularly those that are actively managed, according to Cerulli. Nine of the top 10 Morningstar categories for positive net flows fell into either the municipal or taxable bond asset classes, the report noted.
Equity funds, meanwhile, have seen an exodus of investor assets despite improved performance.
"Over the last 12 months, U.S. equity mutual fund market share, assets, and revenue continue to grow despite the asset class exhibiting net negative flows, thanks to recently rejuvenated equity performance," the report stated.
Equity fund outflows totaled $6.7 billion through February, but funds in the sector were still able to grow to $6.5 trillion—the highest level since September, the report said.
"Investors seemed to have little appetite for equities during February despite a market appreciation of 8 percent from the prior month," the report stated.
In terms of assets, the largest mutual fund companies at the end of February were Vanguard, with $1.9 trillion in assets and 29.9 percent market share; Fidelity Investments, with $898.5 billion and 13.8 percent; American Funds with $626.7 billion and 9.6 percent; and T. Rowe Price, with $345.2 billion and 5.3 percent, Cerulli said.