Oct. 28, 2004 — Money going into stock funds bounced back in September as equity portfolios raked in about $10.1 billion in net new cash, versus inflows of only $1.2 billion in the prior month, according to the Investment Company Institute.
Among equity funds, funds that invest primarily overseas posted an inflow of $4.1 billion in September, compared to $2.3 billion in August. Funds that invest primarily in the U.S. had an inflow of $6.0 billion in September, compared with an outflow of $1.1 billion in August.
The ICI also said hybrid funds, which hold both stocks and bonds, posted a $3.0 billion net inflow in September, compared with an inflow of $2.6 billion in August.
Year-to-date through September, equity funds have gained $138.8 billion in net new cash, well ahead the $98.1 billion figure from the year-ago period.
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Long-term funds — i.e., stock, bond, and hybrid funds — collectively had net inflows of $15.9 billion in September, compared with a net inflow of $8.0 billion in August.
“This resurgence is somewhat surprising,” said Louis Harvey, president of Dalbar Inc., a Boston-based mutual fund consultant. “I would have expected investors to remain disinterested in the stock markets as long as the price of crude oil remains so high. Perhaps these inflows reflect some pent updemand.”