Investing October 27, 2000

Investors Pulling Back From Mutual Funds

October 27, 2000 (PLANSPONSOR.com) - Mutual funds could see more money withdrawn than invested for the first time since the Russian debt default in August 1998, according to new projections.
Reported by

TrimTabs.com Investment Research expects outflows of $3.5 billion for October in the midst of turbulent markets, according to Bloomberg.

The net outflows would be the first since the $11.7 billion that “fled” in August 1998 when Russia defaulted on its debt. Net outflows through October 24 have totaled $2.6 billion.

Most of that outflow is currently attributed to international funds, some $2.2 billion, although the category accounts for just 14% of assets.

TrimTabs projects that technology fund outflows will total $246 million, the first net outflow since February 1999 for the sector. Bonds are expected to see a net $3.2 billion flow out for the full month.

Apparently bucking the current are aggressive growth funds, with an expected net inflow of $3.1 billion for the month.

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