Investors once again retreated from equity mutual funds just one week after giving them a warm response.
According to statistics released Wednesday by the Investment Company Institute, investors pulled $484 million from stock funds over the past week, a reversal from the previous week when investors sent $1.42 billion their way.
U.S. equity funds received the full brunt of the drubbing and then some, losing $804 million for the week ended Wednesday, Jan. 18. Foreign equity funds, in contrast, posted estimated inflows of $320 million, still less than half the $684 million they attracted the week before.
Bond funds continued to win investors, gaining $5.56 billion in inflows for the week. Of the $5.56 billion, $3.81 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—also had a good week, posting estimated inflows of $1.27 billion.
All told, long-term mutual funds gained $6.34 billion, substantially less than the $11.24 billion they posted in inflows the week before.
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.