Investors are putting cash into U.S. stock and bond mutual funds at such a rapid clip that full-year net inflows are likely to set a record in 2010.
As investor sentiment has gradually improved, investors have put nearly $200 billion into stock and bond mutual funds so far this year. Even if net inflows slow from this rapid pace, it is likely that full-year net inflows would top $450 billion, making 2010 a record for annual inflows, Strategic Insight (SI), a business information provider to the fund industry, said Tuesday, May 4.
The previous record for annual inflows into stock and bond funds was set last year, when just over $400 billion went into long-term funds, according to SI’s Simfund database. These figures include open- and closed-end mutual funds and funds underlying variable annuities, but exclude ETFs.
The near $200 billion that has flowed into stock and bond funds through April of 2010 was only the second time in the history of U.S. mutual funds that inflows during the first four months of the years reached about $200 billion; the previous time was the first four months of 2007, when net inflows to stock and bond funds totaled more than $210 billion.