Sales not Enough to Counter Losses to Mutual Funds

However, market losses were at fault for the decrease, as most fund categories reported sales in excess of redemptions for the month. Long-term funds – stock, bond, and hybrid funds – had a net inflow of $25.35 billion in January, versus an outflow of $29.43 billion in December, ICI data showed.

Stock funds posted an inflow of $9.05 billion in January, compared with an outflow of $20.43 billion in December. Among stock funds, world equity funds (U.S. funds that invest primarily overseas) posted an inflow of $2.19 billion in January, while funds that invest primarily in the U.S. had an inflow of $6.85 billion.

Bond funds had an inflow of $16.73 billion for the month, compared with an outflow of $7.01 billion in December. Taxable bond funds had an inflow of $12.87 billion and municipal bond funds had an inflow of $3.86 billion.

Money market funds were still the most popular choice for investors – at least for institutional investors – as ICI data showed the funds had an inflow of $59.52 billion in January, on top of the $109.35 billion inflow in December. Funds offered primarily to institutions had an inflow of $67.62 billion, while funds offered primarily to individuals had an outflow of $8.10 billion.

Hybrid funds posted an outflow of $419 million in January, compared with an outflow of $1.99 billion in December.

The ICI data is here .