US mutual fund net inflows fell to $38bn (€26.8bn) in August from $52bn the previous month as investors have been favouring money market funds in response to market volatility, according to a new report.

Money market funds posted inflows of $30bn in August, bringing inflows for the first eight months of the year to $328bn, excluding exchange-traded funds, according to Loren Fox, a Strategic Insight senior research analyst.