UPDATE 1-All equity funds nab $20 bln in November, best Nov on record -Lipper

Mon Dec 16, 2013 3:16pm EST

Dec 16 (Reuters) - All equity funds excluding exchange-traded funds attracted $20.1 billion in November alone, marking their best November on record, data from Thomson Reuters' Lipper Service showed on Monday.

"We had a strong November because of the good momentum in the market - we saw the Dow go from 15,000 to 16,000," said Jeff Tjornehoj, head of Lipper Americas Research.

In contrast, all taxable bond funds excluding ETFs suffered about $7.5 billion in outflows in November, their sixth consecutive month, Lipper said.

Rising interest rates have cut into bond fund returns, which have led to net cash outflows throughout the year. The Federal Reserve's $85 billion in monthly purchases of Treasuries and agency mortgages have helped boost the Standard & Poor's 500 stock index 25 percent this year. The bond-buying program has helped keep interest rates comparatively low, leading investors to seek higher income in riskier assets such as stocks.

All money-market funds excluding ETFs attracted $64.25 billion in November alone and over $91 billion so far in December, according to Lipper data.

The municipal bond market, however, has had a rough going. In November, all muni bond funds excluding ETFs suffered net cash outflows of roughly $4.7 billion, their ninth straight monthly outflows, Lipper added.

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