Stock Funds Saw Outflows Of $4 Billion in Latest Week
March 31, 2011
NEW YORK -- Mutual fund investors pulled more than $4 billion out of stock funds in the week ended Wednesday, right in the middle of a wild ride on the U.S. stock market. Investors also yanked money out of taxable bond funds and other types of mutual funds. According to AMG Data Services, Arcata, Calif., aggressive and emerging growth stock funds, tracked on a weekly basis, were the biggest losers. They saw combined outflows of about $1.5 billion. Growth funds, while not as risky as aggressive and emerging growth funds, also had big outflows of cash, about $1.3 billion. AMG doesn't track money market funds as closely, but according to composite data, money market funds -- usually safer, more liquid investments -- got more than $1.6 billion during the period. In the previous week, by comparison, money market funds received a hefty $8.4 billion. Among fixed-income funds, municipal bond funds saw their biggest net weekly inflows in nine weeks as investors put about $621 million into muni funds. The shift in mutual fund investments follows one of the most hectic weeks in stock trading as the Dow Jones Industrial Average plunged more than 161 points on Monday. On Tuesday it was down more than 160 points at one point, but rallied to end with a slight gain. Wednesday and Thursday saw progressively bigger Dow gains.
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