Fund Flows Still Favoring Bonds, International

According to Morningstar, individual investors continued to pour money into bond funds…0% interest rates for an eternity will do that.  International fund inflows still outpaced US only.

From Morningstar:

The stock market began 2010 on a sour note, with all major indexes off more than 3% for the month of January. But that didn’t keep U.S. investors away from mutual funds, which saw total net inflows of $44.5 billion.

U.S. stock funds reversed a four-month slide, taking in roughly $2.7 billion in assets. International-equity funds gathered more than $8.1 billion in assets, the biggest monthly inflow since December 2007.

And bond funds continued to dominate all other asset classes, as investors added $28.0 billion to fixed-income funds in January. Based on total net assets, fixed-income funds represent 30% of the mutual fund market, up from 19% at the end of 2007.

The bond fund thing is interesting.  30% of all assets in mutual funds are in fixed income – an asset class that could be destroyed once rationality returns and the Fed hikes rates.  Folks better be watching their durations!

Source:

Mutual Fund Inflows Continue Apace in 2010 (Morningstar)

What's been said:

Discussions found on the web
  1. Blue Coaster33 commented on Apr 20

    Woman of Alien

    Excellent function you’ve done, this page is absolutely cool with excellent information and facts. Time is God’s method of maintaining anything from taking place at once.

  2. how to increase leptin commented on Apr 22

    Woman of Alien

    Best function you have got performed, this website is de facto cool with amazing data. Time is God’s method of retaining every little thing from taking place simultaneously.