Cash Flow Can't Overcome October Markets

November 29, 2000 ( - Equity mutual fund assets slipped 2.5% in October, despite a net cash inflow of $19.07 billion as volatile markets took their toll.

The combined assets of the nation’s mutual funds decreased by 1.1% to $7.196.3 trillion last month, according to the Investment Company Institute. 

Assets of stock mutual funds decreased by $108.2 billion in October, despite net cash flows that topped September’s pace.  Total equity mutual fund assets were $4.289 trillion at October’s end.  

Hybrid fund assets decreased $1.15 billion (0.3%), nearly matching the net cash outflow of $1.14 billion.  Hybrid funds – those with both equity and fixed income investments – totaled $353.7 billion at the end of October.

Bond funds decreased by $5.09 billion in October, with a combined cash outflow of $3.17 billion during the month.

Stocking Up

Equity fund flows were as follow:

  • aggressive growth stock funds increased to $7.16 billion from $5.91 billion in September
  • growth funds saw a net cash flow of $8.59 billion in October, compared with $9.32 billion the month before
  • growth and income funds experienced outflows of $328.1 million in October, compared with outflows of $0.2 million in September
  • international stock funds had outflows of $153.5 million in October, compared with inflows of $1.50 billion in September.