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Portfolio > Mutual Funds

FRC: Funds Will Return

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Financial Research Corp. analysts are predicting that the mutual fund industry soon will bounce back from the recent asset outflow.

Mutual funds should be getting annual net inflows of about $130 billion to $180 billion, according to a fund market sizing study from FRC, Boston.

Mutual fund gross sales and redemptions were at their highest levels in 2007 and 2008, exceeding $2 trillion in each year, the analysts report.

The level of money movement will continue to be high for the next several years, with the percentage of gross sales and redemptions remaining above historic industry averages, the analysts predict.

Fund assets will grow at a faster rate in the independent, regional and registered investment advisor channels than they will in the wirehouse, bank and insurance channels, the analysts write.

Independent, regional, and RIA firms will contribute 55% of mutual fund sales in 2013, up from 48% in 2008.


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