Stock funds posted outflows of $29.04 billion in September, making it the worst month on record and the third month this year in which stock funds have posted net outflows, according to the Investment Company Institute.

Until September, March had been the worst month on record with $20.67 billion in outflows, according to the ICI. But the prolonged bear market coupled and the September 11 terrorist attacks had an impact on investors and reflect their reaction, the ICI said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.