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.
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.