INVESTORS' conservative attitude to risk amid volatile market conditions showed in the most recent numbers from the Hong Kong Investment Funds Association (HKIFA). Although the funds industry as a whole experienced net inflows of US$30.64 million in September, there were big net outflows from equity funds apart from North American equities. Bonds and cash funds were by far the most popular, attracting net inflows of US$43.1 million and $44.3 million respectively. HKIFA chairman Desmond Chan said investors had turned to bond products due to the turmoil in global equity markets. 'Also, the benign outlook for inflation and the prospect that interest rates in the US and Europe will be on a downward, rather than an upward, trend have provided impetus for investors to take up fixed-income products readily.' There were signs that the haemorrhaging of money out of Asian funds had slowed down in September. Net outflows from Asian funds totalled $28.06 million, far less than the $90.23 million that fled in August. The HKIFA said the drop in outflows among Asian funds was concentrated in Hong Kong and single-country Asian funds. Gross redemptions of Hong Kong funds fell to $24.6 million in September, down from $51.9 million in August, and single-country funds experienced gross redemptions of $10.4 million, down from $41.4 million in August. The two sectors with the heaviest outflows in September were 'international/others' and European equities, which lost a net $19.71 million and $12.67 million respectively. Mr Chan said this was due to a perception that economic growth in Europe was about to slow down. 'As the Asian problems spill over to Russia and Latin America, European markets are unable to stay immune,' he said.