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Fund Flows Not Quite What They Appear

October 22, 2012

Constant reminders of the perpetual net outflow of dollars from domestic equity mutual funds and the subsequent piling of dollars into bond mutual funds leads us to the seemingly obvious conclusion that equities are out and bonds are in.... especially for the retail investor.
-Kristen Hendrickson, research analyst, Leuthold Weeden

Constant reminders of the perpetual net outflow of dollars from domestic equity mutual funds and the subsequent piling of dollars into bond mutual funds leads us to the seemingly obvious conclusion that equities are out and bonds are in.... especially for the retail investor. Despite these patterns, investors remain heavily invested in U.S. focus equity mutual funds; while dollars are obviously flowing heavily into bond funds, they’re also flowing into other varieties of equity funds. On the next few pages we take a deeper look into where retail dollars are residing and flowing within the U.S. investment industry.

Normalizing Fund Flows—Domestic Equity Mutual Funds Still King

When taking into account the vast amount of capital still residing in domestic equity mutual funds, out- flows appear less overwhelming.

...Read the Full Report