Investors have not yet fully recovered their faith in mutual funds that invest long-term in U.S. stocks. According to statistics released Tuesday by the Investment Company Institute, investors pulled $2.13 billion from U.S. stock mutual funds in January, stanching but not stopping the $19.93 billion outflow the month before.

Investors displayed greater confidence in world equity funds, which raked in $1.91 billion, reversing December’s outflow of $8.91 billion. The inflow, however, was still not enough to bring stock mutual funds overall into positive territory. As an investment class, all stock funds posted an outflow of $218 million for the month.

Bond funds, in contrast, posted an inflow of $27.86 billion in January, up three-fold from the $9.5 billion they posted in inflows a month earlier. The bulk of the $27.86 billion infusion went to taxable bond funds, which received $21.25 billion, up dramatically from the $4.9 billion they received in December. The remaining $6.61 billion went to municipal bond funds.

Hybrid funds attracted $8 billion in new investments in January, almost three times more than the $2.74 billion inflow they posted the previous month.

All told, stock, bond and hybrid funds drew $35.64 billion for the month, a dramatic reversal from the $16.60 billion they lost in December.

The combined assets of the nation’s mutual funds, which include money market funds, increased $440.8 billion, or 3.8%, to $12.06 trillion in January, according to ICI. Stock funds increased the most in value, jumping 6.5% to $5.54 trillion.


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