Reuters reports that global investors continued to buy equity funds in the week ended May 12, driven by hopes of an economic rebound and expectations of faster vaccine rollouts to curb the pandemic.

According to Refinitiv data, global equity funds received $15.1 billion worth of inflows, the biggest in four weeks.

However, the inflows mainly involved cyclical stocks, while growth funds, which invest in fast-expanding sectors such as tech, faced outflows on concerns over rising inflation levels. 

Financials and mining sector funds received $1.3 billion each, while tech sector funds faced outflows worth $1.2 billion in the week, the data showed.

Growth stocks are hit the most when there are increased expectations of higher inflation and interest rates, as they lower the present value of future cash flows, making the stocks less attractive.