Cash Flow Into Equity Funds Eases in April: ICI

Money market funds had an outflow of $19.56-billion in April, compared with an outflow of $53.09-billion in March. Funds offered primarily to institutions had an inflow of $7.98-billion, while funds that are offered primarily to individuals had an outflow of $27.54-billion.

The combined assets of the nation’s mutual funds decreased by $127.60-billion to $6.935-trillion in April.

“The cash that went in during April was certainly not a roaringly high volume of money, but I think it indicates that investors are still keeping the faith and not cashing out despite the many uncertainties weighing down the market,” said Louis Harvey, president, Dalbar Inc., a Boston-based mutual fund consultant. Harvey noted that the net cash flow picture is far healthier than it was at this time last year.

Indeed, year-to-date through the end of April, stock funds are far ahead of last year’s pace, having received net new cash flow of about $66.84-billion, versus an inflow of about $20.06-billion for the comparable period in 2001.