Q1 Mutual Fund Inflow Hits $60B

March 20, 2002 (PLANSPONSOR.com) - More than $60 billion poured into equity mutual funds during the first quarter of 2002, the largest such figure since the second quarter of 2000.

That was the estimate in a press release from Strategic Insight (SI), a New York market research firm that provides mutual fund cash flow data.

Strategic Insight attributed the first quarter performance to:

  • rising investor and consumer confidence,
  • poor bank and money market yields,
  • seasonal investments,
  • the pace of retirement and 529 plan savings, and
  • ongoing shift from individual equities into mutual funds

Strategic Insight said its first-quarter estimate is based on projections of March results, along with January and February data.

During February, SI estimated that open-end equity and balanced fund inflows exceeded $11 billion and bond fund inflows were also over $11 billion. 

Money funds experienced modest redemptions, reversing persistent recent inflows by institutional investors.