The markets may be wreaking havoc on funds performance, but that is not stopping investors from pouring more money into mutual funds, according to preliminary figures issued today by Strategic Insight.
Despite poor performance in July across a variety of fund sectors including most equity funds, which posted an average loss of 10%, investors continued to add money to their funds. Equity fund inflows amounted to $3 billion in July and bond fund flows totaled $7.5 billion, according to the firm.
Value funds of all market caps attracted in excess of $6 billion, led by small-, flexible-, and mid-cap funds. Flows into large-cap value funds, which are down 3% for the year, were minimal.
Growth funds lost $3 billion in July, with all growth funds recording outflows.
Technology funds posted $1 billion in outflows while diversified international equity funds lost nearly $3 billion last month.
So far this year, stock funds have attracted nearly $70 billion in net flows while bond and money market funds have generated $45 million and $200 million respectively.
Strategic Insight predicts continued flows to long-term funds in the second half of the year. In fact, total industry flows for 2001 are predicted to surpass $400 billion, putting it in line with last years total.