After a strong start in February, domestic stock mutual funds again fell out of favor, according to the latest weekly statistics released Wednesday by the Investment Company Institute. Investors withdrew an estimated $322 million from U.S. equity funds during the week ended Wednesday, Feb. 22, the first time this month that the funds posted an outflow.

Investors were kinder to foreign equity funds as they sent an estimated $1.13 billion their way, $123 million more than they did the week before.

As has been the trend for nearly a year, investors were most generous to bond funds, giving them an estimated $8.38 billion, their largest infusion this month. Of the $8.38 billion, $6.96 billion went to taxable bond funds with the remaining $1.42 billion going to municipal bond funds.

Hybrid funds — those that invest in both stocks and fixed income securities — had estimated inflows of $1.60 billion, down 40% from the $2.66 billion inflow they posted a week earlier.

All told, stock, bond and hybrid funds gained $10.79 billion in fresh investments for the week, their weakest inflow this month.

The weekly fund flow estimates are derived from data covering more than 95% of industry assets, according to ICI. The statistics cover long-term mutual funds, those the ICI defines as investing in long-term instruments.

Margarida Correia writes for Bank Investment Consultant.


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