A record $20.6 billion flowed out of stock mutual funds in March, the largest ever one-month outflow in dollars and the fourth largest outflow ever in percentage of assets. But, the records do not reflect most shareholder's sentiments, according to industry analysts.

The outflows amount to 0.56 percent of total assets, the worst month for outflows since November 1988 when outflows amounted to 1.61 percent of total assets, according to the ICI. But March's spike in outflows is relatively small considering the prolonged downturn in market performance, according to Avi Nachmany, co-founder and director of research for Strategic Insight of New York.

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