NU Online News Service, July 25, 2003, 5:09 p.m. EDT – U.S. investors returned to stock mutual funds in June, according to Financial Research Corp., Boston.

Because investors were so risk-averse in the weeks leading up to the Iraq war and for several weeks after the war started, stock funds attracted only $24 billion more assets during the first five months of the year than they lost.

But stock funds enjoyed a net inflow of $20 billion in June, compared with a $13 billion net outflow in June 2002, FRC reports.

Corporate bond funds also benefited. Their net inflow increased to $6.1 billion in June, from $3.5 billion in June 2002.

More conservative funds suffered. Tax-free bond funds brought in $1.7 billion in June 2002 but lost $5 million last month, and other government bond funds experienced an even sharper reversal. Taxable government bond funds went to a net outflow of $611 million from a net inflow of $6 billion, FRC says.