A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 2, 2025. REUTERS/Eduardo Munoz

Dec 9 (Reuters) - U.S. investors poured large sums into money market funds while pulling back from riskier equity funds in the week to December 3, taking a cautious stance ahead of the Federal Reserve's policy decision on Wednesday.

They accumulated approximately $104.75 billion worth of U.S. money market funds, registering their largest weekly net purchase since November 5, LSEG Lipper data showed.

Despite expectations of a rate cut, investors remained wary, with stretched valuations in mega-cap technology stocks reinforcing the shift toward safer assets.

They ditched U.S. equity funds amounting to a net $3.52 billion, in a second successive week of net selling.

Mid-cap funds witnessed a seventh straight weekly net outflow, valued at $494.92 million. Small- and large-cap funds also experienced net disposals of $1.18 billion and $476 million, respectively.

Sectoral equity funds, however, stayed popular for a second week as these funds drew approximately $510 million worth of net inflows.

Industrials, and gold and precious metals equity funds saw inflows of $510 million and $293 million, respectively.

U.S. bond funds, meanwhile, attracted just $314 million, the smallest amount for a week since October 1.

Short-to-intermediate investment-grade funds and municipal debt funds secured inflows of $1.45 billion and $737 million, respectively, while short-to-intermediate government and treasury funds had a weekly outflow of $1.58 billion.

(Reporting by Gaurav DograEditing by Ros Russell)