Money Market, World Equity Funds Strong Draw in November

December 20, 2004 ( - Net inflows to US equity funds last month were the largest since February, and total industry flows were the strongest in two years, according to a report from Lipper Inc.

Overall, the total net inflows to mutual funds – some $54 billion – was the largest inflow since November 2002, and the second-largest since November 2001.  In October, net flows into stock funds over the month totaled $15.3 billion, a $5 billion hike from the previous month (see   Equity Funds Spring Ahead in October ).

The mutual fund tracker reported that an estimated $24.4 billion flowed into stock funds in November, of which $20.1 billion went into pure equity funds.   Of that, $8.1 billion went to US diversified funds, but World Equity funds drew $10.8 billion.

Among US diversified equity funds, multi-cap funds pulled $7.0 billion, mid cap attracted $3.4 billion, and $2.8 billion went to small caps.   However, $5.1 billion left large-cap funds.   Across all market-cap funds, value offerings drew $5.6 billion, and core funds pulled in $3.0 billion.   Growth funds lost $0.5 billion during the month.

Among fixed-income offerings, money market funds pulled in $27.6 billion (the largest positive margin in 24 months, according to Lipper), while long-term bonds gained $3.2 billion, and short- and intermediate-term offerings lost $0.8 billion.