Net inflows into mutual funds dropped dramatically in February to $3.95 billion, down from $29.5 billion in January, according to Financial Research Corp. of Boston. That drop is reflective of the declining market and is not at all surprising, according to Avi Nachmany, director of research at Strategic Insight of New York.
"In January, the Nasdaq was up, the stock market was up significantly and people were saying, Ok, we're coming back,'" said Nachmany. "So flows in January were not only seasonal flows, but also because of the market. But then the market went down in February."