Mutual-Fund Outflows Continue for 6th Week
Long-term mutual funds had estimated outflows of $2.04 billion in the latest week as investors pulled more money from U.S. and foreign funds than they put into bond and hybrid funds, according to the Investment Company Institute.</br></br>The funds tracked by ICI have posted outflows for the last six weeks in a row, as volatility in the stock market related to the U.S. debt-ceiling debate and concerns about stagnant domestic growth and the European debt crisis has rattled investors.</br></br>For the week ended Aug. 24, equity funds had outflows of $3.21 billion, compared with inflows of $1.69 billion in the prior week. Investors pulled $2.6 billion from U.S. equities and withdrew $610 million from foreign funds.</br></br>Meanwhile, ICI reported bond funds had inflows of $295 million, compared to week-earlier outflows of $3.12 billion. Investors put $287 million into taxable funds, while inflows to municipal funds totaled $8 million.</br></br>Investors also added $871 million to hybrid funds after prior-week inflows of $874 million. Such funds can invest in both stocks and fixed-income assets.