Sept 12 (Reuters) - U.S. investors dumped equity funds

in the week to September 10, booking profits at record highs

and cutting exposure on caution over lofty valuations and

geopolitical tensions in the Middle east and Ukraine.

According to data from LSEG Lipper, investors divested a net

$10.44 billion worth of U.S. equity funds - the most since

August 6 - in the most recent week.

The S&P 500 hit a record 6,592.89 on Thursday, lifted

by expectations the Federal Reserve will cut interest rates

three times this year, pushing its one-year forward

price-to-earnings ratio to 24.33, well above the 10-year average

of 19.38.

Large-cap equity funds lost a net $18.22 billion, the most

in a week since June 18.

Investors also ditched mid-cap funds worth a net $912

million and small-cap funds worth $442 million.

Sectoral funds bucked the trend with a third week of net

inflows, to the tune of $3.77 billion, thanks to $3.42 billion

flowing to the technology sector.

Investors allocated a net $8.61 billion to bond funds,

extending purchases into a 21st successive week.

Short-to-intermediate government and treasury funds

attracted a net $2.37 billion, and short-to-intermediate

investment-grade funds $1.2 billion.

Net weekly inflows into municipal debt funds were at a

three-week high of $2.18 billion.

Money market funds attracted net inflows for a third

straight week, drawing $40.05 billion.