A rebound in stock mutual fund inflows could be the long-awaited harbinger of rejuvenated investor confidence in the market, according to Lipper.
Recent shifts into stock mutual funds potentially signal an end to lackluster sales that have plagued the industry since August 2003. Equity mutual funds in June soaked up $18.8 billion of fresh cash, according to Lipper, while fixed-income funds leaked $8.2 billion. The outflow in bond funds was staunched by strong performance in the high-yield sector, which tempered its hemorrhaging to $700 million in June from $4.8 billion in May. Money market funds, which bled $21.8 billion last month, were also big losers.