Redemptions of long-term funds - stock, bond and hybrid funds - in the first half of 1999 reached nearly half a trillion dollars., according to the Investment Company Institute, the fund trade group in Washington, D.C. These redemptions soared by 46 percent to $498 billion, from $341 billion in the first half of 1998, according to ICI. These heavy redemptions counteracted an 18 percent rise in gross sales, effectively bringing net sales down by 37 percent, according to the ICI.
Gross sales for the six months were up by 18 percent to $609 billion, from $514 billion in the comparable period of 1998, according to ICI. And mutual fund companies enjoyed the strongest sales month so far this year in June, with net new cash flow of $19 billion, up 26 percent from $15 billion in May, according to the ICI.