Fund Inflows Near Six Year Highs

December 18, 2003 ( - Inflows to equity and balanced-type funds exceeded $25 billion in November.

November’s inflow is even more impressive when measured next to October’s $30 billion inflow total, even though November had 4½ fewer trading days (See  Strategic: October Good to Equity, Balanced Funds ).

Looking at 2003 in aggregate, Strategic Insight says inflows into stock, balanced, and bond mutual funds are projected to reach $300 billion, the highest pace since 1997 and just shy of an all-time record.   Assets held by such funds rose $1.3 trillion this past year, the largest annual expansion ever.

Offering insight into the market – which includes exchange-traded funds and funds underlying variable annuities – Strategic Insight’s Director of ResearchedAvi Nachmanynoted, “By their actions, fund investors continue to affirm their confidence in the mutual fund vehicle, as well as their improving financial comfort.”   Looking forward to 2004, Nachmany continues, “Like other economic indicators, such rising investments project another strong year during 2004, assuming sustained economic activity.”