Investors Pulling Back From Mutual Funds

October 27, 2000 ( - Mutual funds could see more money withdrawn than invested for the first time since the Russian debt default in August 1998, according to new projections.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