US Stock Funds See a Boost in November

December 30, 2004 ( - US stock funds rallied in November, posting large returns that tripled the previous month's inflows.

Investors added $21.4 billion to US stock funds in November, which was the highest total since April 2004. This was three times larger than the total seen in  October , when $7.2 billion entered such funds, according to an Investment Company Institute (ICI)  news release .

For all funds, there was a net inflow of $273.7 billion on the month, or 3.6%.ICI data showed that total stock funds inflows reached $78 billion, or 2%, in October, rising to $3.99 trillion, up from $3.91 trillion in September.

Long-term funds – stocks, bonds, and hybrids – rose over $27 billion on the month, well above the preivous month’s $14.22 billion inflow. Year-to-date, this number stands at $196.6 billion, down slightly from last year at that time, when net inflows stood at $201.3 billion.

Breaking these numbers down, bond funds took in $2 billion on the month, while money market funds took in $27.5 billion. In October, bond funds brought in $3.47 billion, while money market funds brought in $14.06 billion. In September, money markets saw a massive outflow of $43.43 billion.

Taxable bond funds brought in $2 billion in November. Municipal bonds did not fair so well, however, losing $6 million on the month.

Hybrid funds posted over $4 billion in inflows, up slightly from October’s $3.46 billion.