Domestic Stock Funds Show Strong Cash Flow

By Norris, Floyd | THE JOURNAL RECORD, May 3, 1995 | Go to article overview
Save to active project

Domestic Stock Funds Show Strong Cash Flow


Norris, Floyd, THE JOURNAL RECORD


NEW YORK _ Mutual funds that buy American stocks are continuing to attract a lot of cash from investors, although May's cash flows have been down from April's extraordinarily high levels.

In April, such funds took in a net $8.6 billion, the highest flow for domestic funds since January 1994, but the cash did not stay in the funds for long. Instead, almost all of it was invested immediately in stocks, according to figures released by the Investment Company Institute, a trade group.

The figures showed that domestic mutual stock funds had just 6.8 percent of their assets in cash at the end of April, down from 7 percent in March and the lowest since 1978.

While the money is pouring into stock funds, bond funds are breaking even, at best, in terms of money flow. In April, a net $1.4 billion was withdrawn from bond funds, with most of that coming from funds that invest in municipal bonds.

"In 1994, we had the worst bond market in history, and that is a wound that has not healed yet," said Jack Sharry, a managing director of Putnam Investments. "People have a greater comfort with equities."

At Fidelity Investments, the nation's largest mutual fund group and a unit of the FMR Corp., domestic equity funds took in about $1.3 billion this month, said spokeswoman Marilyn Morrison. That was down from $2.5 billion in April, when cash flows were inflated by the deadline for many retirement fund contributions.

April also saw a rebound in cash flow for international stock funds, which invest only outside the United States, and global stock funds, which can invest anywhere in the world.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Domestic Stock Funds Show Strong Cash Flow
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?