Investors steered $1.43 billion into stock mutual funds during the week ended Wednesday, Jan. 11, breaking a near nine-month spell of investor redemptions that totaled more than $172 billion, according to the latest statistics from the Investment Company Institute.
Investors placed $753 million of the $1.43 billion into U.S. equity funds, with the remaining $681 million going into foreign stock funds. That’s a big reversal from the previous week when investors withdrew $9.36 billion from stock mutual funds.
For the week, bond funds posted net inflows of $7.87 billion, more than twice the $3.30 billion they took in the week before. Of the $7.87 billion, $6.12 billion went to taxable bond funds and $1.74 billion to municipal bond funds.
Hybrid funds – those that invest in both stocks and fixed income securities – attracted $1.95 billion for the week, up from $454 million the week before.
All told, long-term mutual funds gained $11.25 billion, reversing three consecutive weeks of investor redemptions totaling $10.41 billion.
The weekly fund flow estimates are derived from data covering more than 95% of industry assets, according to ICI. The statistics cover long-term mutual funds, those the ICI defines as investing in long-term instruments.
Margarida Correia writes for Bank Investment Consultant.