Despite a volatile market and a slowing economy, stock funds proved the most popular, while money market funds gained $16.6 billion in new money in December, a decrease from the $56 billion in new inflows posted in November.
For the month of December 2000 compared to November 2000, fund categories showed the following gains:
- stock funds grew the most in (2.8%), to $3,96 trillion in net assets
- hybrid funds hit $350 billion (up 2.3%)
- muni bond funds hit $278 billion (up 2.2%)
- taxable bond funds were up 1.5% to $531 billion
- taxable money markets were up 1.2% to $1.60 billion; and
- tax free money markets funds gained 2.2% to $238 billion in net assets.
New Cash Injections
The ICI study also found that new cash flow into stock funds for 2000 was $309.34 billion, compared with $187.67 billion in 1999. The previous record for annual cash flow was $227.1 billion in 1997.
Some funds saw a decrease in net assets:
- Hybrid funds in December saw $1.56-billion outflow of money, compared with an outflow of $263 million in November.
- Taxable bond funds had an outflow of $1.22 billion in December, compared with an outflow of $646 million in November.
- Municipal bond funds had an inflow of $240 million in December, compared with an inflow of $9 million in November.
In the survey, mutual fund companies report actual
assets, sales and redemptions to the ICI.