U.S. junk bond mutual funds saw a $246 million outflow in the week ended Wednesday, the third straight week of outflows from the funds, according to AMG Data Services.

The outflows, reported late on Thursday, followed a $426 million outflow in the prior week. The funds have lost nearly $3 billion so far this year as investors take profits following a near-record rally last year.

"The group has had such a run over the last 18 months or so that investors are simply looking elsewhere," said Scott Berry, a Morningstar analyst. "They could be looking at the stock market for more opportunities."

Equity funds took in $1.6 billion in the week ended Wednesday, the sixth straight week of inflows, according to AMG.

Junk bonds carry speculative ratings and pay high yields to compensate for their risks. The bonds have posted a 0.6 percent loss this month, leaving total returns for the year to date at 1.5 percent, down from a peak of 2.8 percent in late January, according to Merrill Lynch & Co.

The number of junk bond funds reporting inflows declined to 124 in the latest week, the fewest since last August and down from 129 in the prior week. Funds reporting outflows rose to 241 from 229.

(Reuters)