• Money market fund assets reached a record high of $4.8 trillion as of February 2023, and recent monthly net inflows of $51.8 billion indicate surging demand. Money market funds have collected $193.6 billion in net inflows over the past 12 months, with the majority—$167.1 billion—just in the past three months.
• Comparable growth in money market assets over the past 20 years has only been seen prior to the onset of the Covid-19 pandemic and prior to the 2008 financial crisis.
• Some of the causes for the dramatic inflows include higher interest rates making money market funds more compelling and the near-collapse of several regional banks in recent weeks sparking some money to shift out of deposit accounts. With bank worries dimmed, Wall Street analysts expect money market funds to continue to attract investors, if at a slower pace, because of their high yields and relative safety in the face of financial market volatility.  

Estimated Money Market Net Flows, September 2022-February 2023 ($M)

Source: FUSE, Morningstar