The Investment Funds Institute of Canada reported strong mutual fund sales for October, with money market funds leading the way once again.

The October IFIC numbers show net new sales of more than $3.2 billion. The vast majority, $2.5 billion worth, went into money market funds. Only $684 million flowed into long-term funds, as investors continue to seek out during volatile markets.

“Mutual fund sales are up over 200% from last month and 120% from the same month last year. These are the strongest sales in October since 1997,” said Tom Hockin, IFIC’s president and CEO. “Long term fund sales have also improved this month. Sales reached nearly $700 million in October, the highest sales in long term funds since May of this year.”

With the long-term group, the top two asset classes have been U.S. equities and bond and income funds, with $276 million and $270 million in net sales respectively. Another $106.5 million went into Canadian equity funds.

Only foreign equity and foreign bond funds were in net redemption in the month, to the tune of $95.3 million and $47.6 million respectively. Investors are shying away from the more uncertain foreign markets, but they are jumping into the U.S. stock rally as much as possible.

Total assets under management increased in October to $396.3 billion, up 2.8% from $385.4 billion in September. Assets are down 7.2% from last October’s figure of $427 billion. The bank-owned firms report asset increases in line with the market. There are bigger gains at Fidelity, Altamira, PH&N, Talvest, and Clarington. Losers in the month include AGF, Dynamic and Elliott & Page.

IFIC also reported the total number of Member unitholder accounts at 52 million, a 4.8% increase over one year ago.