Numerology: Fund Flows Bounce Back

Independent and regional broker/dealers, along with RIAs, will account for the majority of mutual fund net sales by the year 2013, reaching 55% from 48% last year. That’s one of the more interesting findings from Financial Research Corp.’s latest Mutual Fund Market Sizing study released at the end of April 2009. The study found that mutual fund gross sales and redemptions reached their peak in 2007 and 2008, exceeding $2 trillion in each of those years, and while “the velocity of money movement will remain high for the next several years,” FRC suggests that $130 billion to $180 billion will flow annually into mutual funds over the next few years, or the low-to-mid-range of where they have stood over the past decade.