Equity Funds Popular with Investors Again (Investor's Business Daily) (28-03-2008)

According to the Investment Company Institute, after pulling huge amounts out of equity funds in January, investors returned in February, as shown by the inflow of $9.51 billion of new money, although the number did in now way match January's outflow of $44.87 billion.

For U.S. stock funds, in flows in February reached $3.62 billion, while $35.64 billion that left the month before.

Overseas funds were also targeted, as investors sent in $5.89 billion in February, after having pulled out $9.23 billion in the previous month.

The inflow came despite declines in the major indexes. The Dow lost 3.03%, the S&P 500 lost 3.4%, and the Nasdaq pulled back 4.95%.

This year is still one of net outflow for stock funds, as they have given back $35.35 billion. By contrast at this point 14 2007, $56.27 billion had flowed in.

Hybrid funds, which invest in both stocks and bonds, also swung back to inflow. They took in $3.26 billion in February, vs. outflow of $1.48 billion in January.

But they too have been off this year vs. 2007. Year to date, hybrids have taken in $1.784 billion. That's a far cry from $7.140 billion by the same time last year.

With stock funds attractive again, bond funds were less so.

 Source: Investor's Business Daily