Long-term mutual funds took in $3.5 billion in the week ended Dec. 29, marking the 42nd straight week for positive inflows, which now top $416 billion, the Investment Company Institute said.

Outflows reversed after the market hit rock-bottom on March 9, 2009. However, most of the returns have been to bond funds, even though the broad stock market indexes ended 2009 up 18%.

In the latest week, stock funds lost $1.2 billion, having taken in $970 million the week prior. The bifurcation between U.S. and foreign stock funds continued, once again, with domestic stock funds shedding $1.42 billion and global stock funds amassing $225 million.

Bond funds saw $4.24 billion in inflows, down from the $7.3 billion the previous week. Taxable funds netted $3.44 billion, and municipals, $802 million.

Money market fund assets rose by $9.46 billion, with taxable funds increasing by $6.86 billion and tax-free funds by $2.6 billion.

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