The combined assets of the nation’s mutual funds increased by $37.9 billion to $6.970 trillion in December, according to the Investment Company Institute’s official survey of the mutual fund industry. In the survey, mutual fund companies report actual assets, sales and redemptions to the ICI.
Here is how the assets of the six major fund categories changed in the past month:
Highlights: Stock funds had an inflow of $3.04 billion last month, compared with an inflow of $15.30 billion in November. Domestic funds had an inflow of $6.94 billion in December, compared with an inflow of $13.46 billion in November. Stock funds that invest overseas had an outflow of $3.91 billion, vs. an inflow of $1.84 billion in November.
Bond funds had an outflow of $2.07 billion in December, compared with an inflow of $6.87 billion in November.
Money market funds had an outflow of $25.63 billion in December, compared with an inflow of $60.30 billion in November. Of the December outflow, $14.36 billion came from funds that are offered primarily to institutions. These funds typically have outflows in December. Funds that are offered primarily to individuals had an outflow of $11.27 billion.
For the year, cash flow to retail money market funds totaled $35.77 billion, compared with $43.09 in 2000. In 2001, cash flow into institutional money funds accounted for $338.87 billion of the total $374.64 billion. Institutional investors, such as corporations, use these funds as a cash management tool and as an alternative to direct investments in money markets.