South Korean investors have been pouring a large amount of money into safer bond funds since July amid jitters over a possible US rate hike, with stock funds suffering a massive outflow, data showed Tuesday.

According to the data by fund researcher Zeroin, local investors added a net 2.37 trillion won ($2.11 billion) into funds investing in domestic and overseas bonds between July 1 and last Friday.

In contrast, a net 2.95 trillion won was withdrawn from investment funds reserved for local stocks during the cited period.

Market watchers said bond funds have been luring investors since June, with equity investment funds suffering a net outflow amid concerns over a potential US rate raise and America's presidential election in November.

Federal Reserve Chair Janet Yellen is slated to give a public speech this week, possibly hinting at a rate hike in the near future.

"Stock market investors are rushing for the exits, believing the local bourse has reached the upper end of range-bound trading," said Oh On-soo, a researcher at Hyundai Securities. "Investors' preference for safety is expected to continue till the end of the year, given lingering woes over a US rate increase and the November general elections."

Meanwhile, separate data showed local stock-type investment funds suffering a net outflow of money for 15 successive days this month. The Korea Financial Investment Association said investment funds for domestic stocks saw a net outflow of 91.6 billion won last Friday, with a total of 1.26 trillion won exiting for the 15 trading days since July 29.

The association attributed the continued net outflow of funds to investors' attempts to cash in recent gains amid an uptrend in stock prices. (Yonhap)