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Cash Into Stock Funds Surges in November

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Cash flows into the nation’s stock mutual funds soared in November, according to data released by the Investment Company Institute (ICI). U.S. stock funds took in $20.71 billion in net new cash for the month, following an inflow of $6.45 billion in October.

World equity funds (U.S. funds that invest primarily overseas) posted an inflow of $11.76 billion in November, versus an inflow of $9.38 billion in October. Funds that invest primarily in the U.S. had an inflow of $8.95 billion in November, compared with an outflow of $2.93 billion in October.

Year-to-date through the end of November, stock funds have received $125.49 billion in net new cash, well below the $167.59 billion figure recorded in the year-ago period.

Long-term funds — stock, bond, and hybrid funds — collectively had a net inflow a net inflow of $20.70 billion in November, compared with a net inflow of $7.59 billion in October.

Bond funds continue to attract little interest from investors. As a whole, fixed-income portfolios had an outflow of $522 million in November, compared with an inflow of $213 million in October. Taxable bond funds had an inflow of $200 million in November, compared with an outflow of $36 million in October. Municipal bond funds had an outflow of $722 million in November, compared with an inflow of $249 million in October.

Money market funds had an inflow of $30.26 billion in November, compared with an inflow of $21.16 billion in October. Funds offered primarily to institutions had an inflow of $33.00 billion. Funds offered primarily to individuals had an outflow of $2.74 billion.

Overall, the combined assets of the nation’s mutual funds increased by $268.2 billion, or 3.2%, to $8.766 trillion in November

NET NEW CASH FLOW OF LONG-TERM FUNDS (BIL.$)

November 2005

October 2005*

YTD 2005

YTD 2004*

Stock Mutual Funds

20.71

6.45

125.49

167.59

Taxable Bond Mutual Funds

0.20

-0.01

26.99

1.20

Municipal Bond Mutual Funds

-0.72

0.25

6.26

-12.74

Hybrid Mutual Funds

0.52

0.93

26.19

40.74

*Revised

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