The MarketsNovember 3, 2009

Investors Shun U.S. Stocks in September

<p>The combined assets of the nation’s mutual funds increased by $211.8 billion, or 2%, to $10.824 trillion in September, according to the Investment Company Institute (ICI).</p>

Reported by Rebecca Moore

Long-term funds—stock, bond, and hybrid funds—had a net inflow of $47.52 billion in September, versus an inflow of $50.17 billion in August.

Stock funds posted a net outflow of $10.53 billion in September, compared to an inflow of $4 billion in August. However, world equity funds (U.S. funds that invest primarily overseas) posted an inflow of $722 million in September, while funds that invest primarily in the U.S. had an outflow of $11.25 billion in September.

Money market funds had an outflow of $127.52 billion in September, compared with an outflow of $53.82 billion in August, according to ICI data. Funds offered primarily to institutions had an outflow of $90.21 billion, and funds offered primarily to individuals had an outflow of $37.30 billion.

Hybrid funds posted an inflow of $10.6 billion, compared to an inflow of $3.14 billion in the prior month.

Bond funds had an inflow of $47.45 billion in September, compared to an inflow of about $43 billion in August. Taxable bond funds posted an inflow of $37.33 billion for the month, and municipal bond funds posted an inflow of $10.12 billion.

The ICI data is available here.