Mutual Fund Assets Increase by $24.4 billion in August

September 29, 2004 ( - The combined assets of the nation's mutual funds increased by 0.3%, or $24.4 billion, in August.

According to an Investment Company Institute survey, long-term funds – stock, bond, and hybrid funds – collectively had a net inflow of $7.88 billion for the month, down from the  July  inflow of $11.19 billion. Stock funds were significantly down, posting net inflows of only $1.09 billion in August, compared to $9.37 billion in July.

Among stock funds, world equity funds – those that invest primarily overseas – saw an August inflow of $2.3 billion, down slightly from the $2.95 billion inflow seen in July. Of funds that invest primarily in the US, aggressive growth, growth and sector funds had an overall outflow of $3.62 billion. This was a turnaround from the July inflow of $2.27 billion, as investors seemed to rush for international investments.

Bond funds had an August inflow of $4.18 billion, up from $1.16 billion in July. Taxable bond funds had an inflow of $4.57 in August, while municipal bond funds had a net outflow of $383 million in August.

Money market funds had a net outflow of $12.63 billion in August, an even greater outflow than was seen the previous month. In July, the outflow for money market funds was $3.22 billion. Institutions accounted for the vast majority of this outflow; funds offered primarily to institutions had an outflow of $11.17 billion, compared to an outflow of only $1.46 billion for funds offered primarily to individuals.