Assets in money market mutual funds continued their steady ascent last week, despite a slight selloff in institutional accounts.

For the week ended Aug. 2, total money market fund assets stood at a record-setting $728.9 billion, a $4.34 billion increase from the previous week, according to the Investment Company Institute, the fund industry's trade group.

As in past weeks, that growth in assets was fueled by retail investors comfortable with short-term interest rates. Assets of the nation's retail funds increased by $4.57 million, to $509.36 billion. Taxable retail funds grew by $3.74 billion, to $408.7 billion, while tax-exempt retail funds increased by $829.1 million, to $100.65 billion.

Institutional money market funds, however, lost a modest $233.9 million, ending the week with assets of $219.55 million. That decline was fueled by a $974.4 million decline in taxable institutional funds. The tax-free funds rose by $740.5 million during the week.

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