June Inflows Up From July, But Still Slightly Less Than Monthly Average

Way up from the $6.16 billion inflow from a month earlier, July's inflow was just less than $11.9 billion, 2005's monthly average. Experts said that investors warmed to rising markets in July and pumped $10.08 billion of new money into stock mutual funds.

"Equity inflow in July was healthy," Vincent Loporchio, a Fidelity Investments spokesman, told Investor's Business Daily. "It was the strongest equity inflow month for us since February."

All long-term diversified stock, bond and hybrid funds had combined net inflows of $18.91 billion in July. A month earlier, those attracted $12.27 billion inflow, according to the Investment Company Institute. Combined, net assets of all U.S.-based mutual funds rose 2.9% to $8.457 trillion during the month.

Part of that was due to new investments. But a rising stock market also increased total assets held in mutual funds. The S&P 500 gained 8% in July. The Nasdaq composite jumped 7% in July. The small-cap dominated S&P 600 index did even better, rising 19%.

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