TOKYO, Aug 13 (Reuters) - The value of Japanese retail-targeted mutual funds rose to a 10-month high of 58.8 trillion yen ($613 billion) in July, lifted by inflows into international equities funds and strength in share prices, an industry body said on Thursday 13 August.

It was the sixth straight month of increases in the value of publicly placed investment trust funds, or "toushins", as signs of a global economic recovery boost investor confidence. The value was also helped by rises in share prices, with the benchmark Nikkei share average .N225 gaining 4 percent in July.

"We are seeing a mixture of launches of fresh funds and also seeing outflows for the purpose of locking in profits," Katsuhiro Konishi, secretary-general of the Investment Trusts Association, told a new conference.

"But in general, we are in a trend where launches of new funds are overwhelming outflows," Konishi said.

The overall value of publicly placed investment trust funds rose by 1.7 trillion yen or 3 percent from the previous month to 58.8 trillion yen in July, the highest since September, the association said.

Net inflows jumped to 577.9 billion yen in July -- the highest since December 2007 -- from 46.6 billion yen the previous month.

The value of stock investment trust funds, which make up about 81 percent of the total, rose for the sixth consecutive month to 47.4 trillion yen, up 3.3 percent or 1.5 trillion yen from June.

Stock funds saw a net inflow of 391.1 billion yen -- the highest in a year -- thanks to strong investments in international equities funds, funds of hedge funds and mixed asset funds, the association said.

But domestic equity funds were struggling to draw investments and saw net outflows for the second straight month.

The value of bond funds rebounded by 181.8 billion yen, or 2.1 percent, to 8.8 trillion yen in July, after falling for the first time since March to 8.65 trillion yen the previous month.

Retail-targeted trust fund holdings of foreign stocks, bonds and money market instruments increased by 955.8 billion yen to 26.7 trillion yen in July, the association said.

Foreign stock investments rose by 248.1 billion yen to 17.2 trillion yen, making up 64.5 percent of total overseas asset holdings.

Foreign bond holdings rose by 464.4 billion yen to 5.52 trillion yen, comprising 20.7 percent of total overseas holdings.

The value of privately placed investment trust funds, bought mainly by institutions, climbed 2.9 percent, or 809.2 billion yen, to 28.9 trillion yen in July.

($1=95.88 yen)

(Reporting by Chikafumi Hodo; Editing by Chris Gallagher)