In their rush for the stock fund exits during July, investors pulled out $52.6 billion – by far the largest such outflow in dollar terms, according to the Investment Company Institute (ICI). In percentage terms, 1.7%, July’s stock outflow represented the second largest behind the October 1987 market meltdown when 3.17% in stock fund assets left. Still, despite the surge, the net outflow was less than 2% of the total.
Meanwhile, bond funds enjoyed a record $28.1 billion inflow in July after digesting $12.2 billion from June’s inflow.
The picture was much different with money market funds in July over the month before, ICI said. money market fund investors generated $54.6 billion in net inflow in July, compared with $43.6 billion net outflow in June. Of the $54.6 billion inflow, $24.3 billion was from institutional hands, ICI said.
Overall the combined assets of the nation’s mutual funds decreased by $252.8 billion to $6.378 trillion in July, according to the ICI.