Stock Funds Add Almost $10 Billion in July

August 30, 2004 ( - Investors added $9.46 billion to US stock mutual funds in July, a slight falloff from June but still a large amount considering the falling stock markets.

According to the Investment Company Institute (ICI), there was an outflow of $1.22 billion from US bond funds, with the money moving, at least in part, into stock funds. Stock fund managers bought a net $13.8 billion worth of stock, over $8 billion more than in the previous month.

Despite the new level of interest in stock funds, stock fund assets fell by $153.3 billion or 3.9% in July to $3.8 trillion. The net inflows to stock funds, tiny as a percentage of stock fund assets, came as all of the major US stock market indices posted declines for the month.

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Among stock funds, world equity funds (US funds that invest mostly overseas) ended the month with an inflow of $2.96 billion in July, versus an inflow of $2.79 billion in June. In domestic funds, only aggressive growth and sector funds had outflows, $583 million and $219 million, respectively, the ICI data indicated.

Overall, assets of mutual funds of all types, including money market funds, fell by $149.9 billion, or 2% to $7.44 trillion, ICI said.