Canada January fund assets down from December-IFIC

* Total assets C$584.6 bln at end of January

* Net sales positive in most asset classes in January

TORONTO Feb 16 (Reuters) - Canadian mutual fund assets under management fell in January from December, amid outflows from money market funds and negative market performance, but the total was still comfortably higher than a year earlier.

The Investment Funds Institute of Canada (IFIC) said assets under management totaled C$584.6 billion ($562.1 billion) in January versus C$595.2 billion the month before.

However it noted that assets under management have increased 1.5 percent per month since January last year, when total assets were C$491.1 billion.

"The year-over-year increase in assets was due to C$1.17 billion in net sales and C$92.5 billion in market effect," IFIC said in its monthly analysis of Canadian mutual funds.

IFIC said money market fund redemptions have continued amid the improved economic outlook in general.

"Between September 2007 and March 2009 investors moved C$23.8 billion (an average of C$1.25 billion per month) into money market funds as a reaction to widespread decline in equity markets and increased market volatility," it said.

"As market performance has improved, investors have moved off the sidelines, redeeming a total of C$22.1 billion (an average of C$2.21 billion a month) out of money market funds over the last 10 months."

Net sales across asset classes, except for money market fund sales, were positive in January, with equity fund sales coming in positive for the first time since May 2009.

Balanced funds contributed the most to net sales in January, showing investors continued to seek ways to offset pure equities exposure with other products.

($1=$1.04 Canadian) (Reporting by Pav Jordan; editing by Rob Wilson)