Investing October 30, 2002

Equity Fund Outflows Pick Up Again in September

October 30, 2002 (PLANSPONSOR.com) - The flow of money out of equity mutual funds appears to be picking up again with a $16-billion stock fund outflow in September, an industry report said.

Reported by

Fred Schneyer

According to the monthly mutual fund flows report from the Investment Company Institute, domestic stock funds felt most of the brunt with a $14.4 billion outflow in September, compared with a $561-million outflow in August.

Global equity funds suffered a $1.6 billion outflow in September, compared to a $2.5 billion outflow in August.

Money market funds also continued to lose big with a $62.4-billion September outflow, compared to a $38.7 billion August outflow (See Money Market Funds Drop $38B in August ).

Bond funds continued to rake it in during the month with a $15.8-billion September inflow, compared with a $17.4-billion inflow the month before.

Taxable bond funds had a $13.5 billion inflow over the month while muni funds enjoyed a $2.3 billion inflow, ICI said.

Overall the combined assets of the nation’s mutual funds increased by $329.2 billion to $6 trillion in September, according to the ICI.