Mutual Funds Report Inflows of $6.34 Billion
Long-term mutual funds had estimated net inflows of $6.34 billion in the latest week as money that was added to hybrid and bond funds more than offset withdrawals from U.S. equities, according to the Investment Company Institute.</br></br>In 2011, investors pulled money from equities for most of the year, but bond and hybrid funds mostly had inflows. Equity funds suffered some of their steepest outflows during the summer, when investors retreated from a volatile stock market due to concerns about an uncertain economic outlook and U.S. and European debt.</br></br>For the week ended Jan. 18, equity funds had net outflows of $484 million, compared with prior-week inflows of $1.42 billion. Investors pulled $804 million from U.S. equities and added $320 million to foreign funds.</br></br>Meanwhile, the ICI reported bond funds had inflows of $5.56 billion, compared with prior-week inflows of $7.87 billion. Investors added $3.81 billion to taxable funds, while inflows to municipal funds totaled $1.74 billion. Investors also poured $1.27 billion into hybrid funds after prior-week inflows of $1.95 billion. Such funds can invest in both stocks and fixed-income assets.</br></br>Separately, assets in money-market funds fell $2.54 billion in the latest week as investors pulled money from taxable government funds and tax-free funds, according to iMoneyNet.