Fund Inflows Drop in May but Now Head Up
Net cash inflows into stock mutual funds declined sharply in May from April, the industry’s chief trade group said Thursday, confirming what many analysts had predicted.
Still, some fund companies say investors are pumping more money into stock funds this month, as the technology sector has rebounded.
In May net new cash flow (gross purchases minus redemptions) into stock funds totaled $16.9 billion, down from $34 billion in April, the Investment Company Institute said.
Bond funds, meanwhile, continued to bleed: Investors pulled a net total $5.2 billion out of taxable (government or corporate) and tax-exempt (municipal) bond funds.
But this month, Vanguard Group said its stock funds have taken in a net $1 billion in new cash, up from $800 million in May. Its bond funds also have seen a significant upturn in cash inflows, Vanguard said.
Janus Funds said its stock fund inflows total $1.62 billion in June, up from $1.46 billion in May. Invesco Funds also reported stronger fund inflows in June than in May.