Investors buy developed mkt stocks, avoid China, junk bonds-EPF

HONG KONG, FEB 19 (Reuters) - Investors put their money to work more selectively last week, choosing mostly developed equity markets and investment grade bonds, while avoiding Chinese stocks and high-yield bonds, EPFR Global data showed on Friday.

Fears about sovereign debt in the wake of Greece's fiscal crisis reverberated through investment decisions, with European equity funds the only major developed market group to see outflows, the fund tracker said in a news release.

Overall, money market funds had redemptions of $37 billion for the week to Feb. 17. Global bond funds in aggregate took in $3.48 billion and global equity funds absorbed $3.69 billion.

EMERGING MARKET EQUITY FUNDS:

These funds as a group saw inflows for the first time in four weeks.

China-focused equity funds had net redemptions for the sixth time in the last seven weeks as fears of more central bank policy tightening spooked investors, while Latin American equity funds posted outflows for the fourth consecutive week.

Russia and Indian equity funds had relatively small inflows, while Brazil had a second straight week of outflows.

U.S. EQUITY FUNDS:

U.S.-focused funds fared the best among developed market funds, taking in $3.14 billion in fresh money.

JAPAN EQUITY FUNDS:

The fund group had its eighth consecutive week of inflows, absorbing a net $123 million in the latest week.

EUROPEAN EQUITY FUNDS:

These funds had their fifth consecutive week of outflows, giving up $303 million in the latest week.

COMMODITY SECTOR FUNDS:

Uncertainty about Chinese demand for raw materials continued to hurt the sector. These funds had their seventh straight week of outflows, bringing year-to-date outflows to the biggest among the nine sectors that are tracked.

ENERGY SECTOR FUNDS:

These funds have raked in year-to-date inflows of $565 million, the most of any sector fund.

HIGH-YIELD BOND FUNDS:

For a second week, this fund group had big redemptions on fears that the deteriorating fiscal situation in Greece will make it harder to refinance risky debt. (Editing by Kim Coghill)