European fund inflows rise sharply in May-Lipper

* Total net inflows reach 32 billion euros

* Carmignac attracts most net inflows

* Barclays, BlueBay get most equities, fixed income

* Property, money market only sectors to suffer outflows

By Joel Dimmock

LONDON, July 13 (Reuters) - Flows of money into European investment funds saw a sharp rise in May, with both equities and fixed-income products posting their best sales for years, Thomson Reuters fund research company Lipper FMI said on Monday.

Total European net inflows hit 32 billion euros ($44.5 billion), the highest since October 2007.

Independent fund firm Carmignac Gestion attracted the strongest overall net inflows in the month, excluding money market funds or funds of funds, at 2.07 billion euros.

Barclays (BARC.L) saw the strongest equity inflows at about 1.54 billion euros, while boutique player BlueBay (BBAY.L) was a clear winner among fixed-income players with inflows of 1.16 billion.

Equities funds saw net inflows of 16 billion euros -- their highest in three years -- while bond funds posted their best month since 2005 as net sales of 9 billion euros were supported by investment-grade corporate debt products.

Only property funds and enhanced money market funds -- perceived as more risky than their traditionally conservative peers -- suffered net outflows in the month.

Lipper FMI said the bounce in May was sparked by pent-up demand from wealth advisers and private banks which had been waiting for an opportunity to pull their clients out of low-interest cash accounts.

"The groups that benefited were the cross-border groups for whom wealth managers are a natural franchise and the sectors that took in the largest inflows were in areas that wealth advisers are best able to access through investment funds," Lipper FMI said.

"After months of equivocation the sentiment shift was dramatic." (Editing by David Holmes) ($1 = 0.7189 euro)