November Mutual Fund Demand Stayed Strong; '85 Sales Seen Up Over 100%
NEW YORK -- Mutual fund sales continued their strong pace in November, and industry officials forecast that total sales for 1985 will more than double last year's sales.</br></br>The Investment Company Institute said sales in 1985 are expected to reach a record $110.5 billion, compared with the previous record of $45.9 billion in 1984.</br></br>The Washington-based trade association said sales in November totaled $11.78 billion, almost three times the year-earlier $4.07 billion. However, the figure was 6% below October's $12.5 billion in sales, reflecting fewer business days in the month.</br></br>Mutual fund sales have been bolstered this year by the rising stock market as well as keen investor interest in high-yielding funds. The institute estimates that $60 billion of 1985's sales came from government income, municipal bond and Government National Mortgage Association passthrough funds. Fixed-income fund yields made them more attractive than money-market deposit accounts to many investors.</br></br>Redemptions in November were $2.76 billion, compared with $2.7 billion a month earlier and $1.83 billion in November 1984. Net sales, or sales less redemptions, fell to $9.03 billion last month from $9.8 billion in October. However, November's net sales more than quadrupled November 1984's sales of $2.24 billion.