NU Online News Service, July 29, 2004, 2:19 p.m. EDT

Worries about interest rates and the U.S. economy cut the net flow of cash into U.S. stock and bond mutual funds by almost 50% in June.[@@]

The funds attracted only $16 billion in net inflow that month, down from a total net inflow of $31 billion in June 2003, according to the Financial Research Corp., Boston.

Net inflow increased to $4.9 billion, from $3.3 billion, at international and global funds, but it fell to $18 billion, from $21 billion, at domestic stock funds.

Meanwhile, $3.5 billion in cash flowed out of government and corporate bond funds. That compares with a net inflow of $7.5 billion in June 2003.