By Patturaja Murugaboopathy and Gaurav Dogra

Aug 13 (Reuters) - Global managed volatility funds saw

their first net inflows for more than a year last month, as

markets reacted to growing concerns over the economic outlook,

uncertainty around monetary policy, and bubble-like valuations

in the technology sector.

According to LSEG Lipper data, managed volatility funds,

which aim to minimize risks and provide stable returns during

periods of uncertainty, recorded their first net inflows in 14

months, attracting $601 million in July.

Analysts expect further inflows into these funds in the

coming months, as market jitters, triggered this month by

worries over U.S. labour markets and an unwinding of billions of

dollars of yen-funded carry trades, deepen.

Managed volatility funds typically put money into

low-volatility stocks, or use strategies such as options

arbitrage, to exploit price and volatility discrepancies across

the options market.

Earlier this month, Wall Street's "fear gauge," the CBOE

Volatility Index, reached its highest level in more than

four years, while the bond volatility index, the ICE BofA MOVE

Index, spiked.

Although both indexes have since settled lower, lingering

economic worries and uncertainties about U.S. rate cuts continue

to feed concerns that markets may experience another round of

extreme volatility in the coming months.

"The demand for managed volatility funds is expected to

remain high through the end of the year. This is due to the

upcoming U.S. elections and potential economic instability,

which only increase market fluctuations," said Julia Khandoshko,

CEO at international broker Mind Money.

"Investors tend to use these funds as hedging tools and to

protect their portfolios in similar conditions of uncertainty."

According to LSEG data, the Invesco S&P 500 High Dividend

Low Volatility ETF, JPMorgan Nasdaq Equity Premium Income ETF

and Fidelity SAI US Low Volatility Index Fund had the most

inflows last month, securing approximately $774.58 million,

$588.77 million and $395.61 million respectively.

This month, the iShares Edge MSCI World Minimum Volatility

UCITS ETF USD A, JPMorgan Managed Income Fund L and Invesco S&P

500 Low Volatility ETF have garnered $137.25 million, $119.49

million and $87.2 million respectively in flows.