Strategic: October Good to Equity, Balanced Funds

November 20, 2003 ( - Inflows to equity and balanced-type funds exceeded $30 billion in October.

Also seeing an inflow were bond funds, which gained $4 billion on subsiding interest rate fears.   By comparison, last month saw bond outflows of $5 billion   (See Strategic: Equity and Balanced Funds Take in $25 Billion in September ), according to data from Strategic Insight.

Offering insight into the market – which includes e xchange-traded funds and funds underlying variable annuities – Strategic Insight’s Director of Researched noted, “Investors nationwide are closely monitoring the news about the fund industry, yet their actions do not show a reduced commitment to fund investing, yet.   As stock market prices and confidence were rising, the pace of equity fund purchasing also increased, and was the second highest monthly pace since the collapse of the “bubble” market in early 2000.”

Further evidence of this trend could be found inOctober’s fund flow data representing the eighth month in a row of inflows into equity and balanced-type mutual funds.   Overall, October’s $31 billion was the largest inflow recorded by Strategic Insight since June’s revised figures (See  Strategic: Equity and Balanced Funds Take in $25 Billion in June ).