August was truly the Dog Days for fund firms lacking fixed income products in their line-up. Investors pulled a net $5.8 billion from equity products in August, reports Lipper. Meanwhile, they poured more than $19 billion into bond funds.

Net flows to all mutual funds were negative, though, as shareholders pulled $36.9 billion out of money market funds, according to the report. All told nearly $24 billion left all types of funds during the month.

The good news for fund firms is that the pullout from equity funds is no where near as stark as in July. Lipper reports that equity fund outflows in August dropped 90 percent from July's record amount.

Meanwhile, bond fund retained their attraction. August's $19 billion inflow into bond funds was second only to July's record amount, with only $4.4 billion flowing into institutional funds, according Lipper's report on fund flows.

For the first month in 14 years, shareholders pulled money out of equity funds against a backdrop of rising indices. Moreover, $1.4 billion exited S&P 500-based funds as 401(k) allocations were shifted.  

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