Nov. 26, 2003 — Investors continued to put money into mutual funds last month, despite the scandal plaguing the industry. But two of the companies in the eye of the market timing storm — Janus Capital Group (JNS) and Putnam Investments — suffered redemptions.

Stock and bond funds took in an aggregate $23.1 billion in October, according to Financial Research Corp. Of that total, domestic equity funds netted $16 billion, and funds that invest in foreign stocks attracted $7.2 billion.

Funds that buy corporate bonds saw inflows of about $3 billion, but assets in those that invest in government bonds declined $2.2 billion, while municipal bond fund assets fell $702 million.

Putnam’s assets dropped by nearly $2.3 billion last month after declining by $731 million in September, when New York Attorney General Eliot Spitzer first announced charges of illicit trading in fund shares in the industry. The company recently agreed to settle charges with the Securities and Exchange Commission stemming from improper trading of its funds.

Assets at Janus fell by nearly $2 billion in October after declining by $2.7 billion a month earlier, Boston-based FRC said. The company was one of the first to be named in Spitzer’s probe.

At the other end of the spectrum, American Funds was the top selling complex last month, when it netted $7 billion. The company’s Growth Fund of America/A (AGTHX), which pulled in approximately $1.7 billion, was the best selling fund.