Investors are starting to withdraw assets out of mutual funds, according to MarketWatch. Investors took a net $2.39 billion from global equity mutual funds by last Thursday, according to TrimTabs Investment Research. The previous week, investors put $2.73 billion were poured into such funds.The outpour came after last week’s stock market biggest one-day decline since the Sept. 11, 2001 terror attacks. The decline was due to the Chinese stock market declining 9%, and constant worry about U.S. subprime loans and the Japanese yen’s sharp appreciation.
Equity funds that invest primarily in U.S. stocks saw outflows of $3.48 billion, compared to inflows the previous week of $530 million, according to TrimTabs.
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