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A shift away from traditional asset classes and into alternative products is resulting in billions of dollars in outflows from the industry's largest mutual funds.

Seven of the largest asset managers reported a record $50 billion in combined redemptions during the third quarter, mostly from active funds, according to Bloomberg News. As a result, Brad Morrow, the head of research for the Americas at Willis Towers Watson, suggests the industry is on the heels of massive consolidation.

"You're going to see niche players with competitive advantages … implement interesting strategies for portfolios, but I think who will be hit hardest are the more traditional managers that don't have the size, scale or operational efficiencies to maintain lower costs," Morrow explained. "It is going to be a tougher world for those."

Scroll through to see the 20 largest open-end funds ranked by their net share class flows over the last five years, as of Oct. 28. All data is from Morningstar.
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Vanguard Total Intl Stock Index Inv (VGTSX)
Estimated 5-Yr. Net Flows (millions): $46,949
5-Yr. Return: 1.24%
Expense Ratio: 0.19%
Net Assets (millions): $225,971
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Vanguard Total Bond Market II Idx Inv (VTBIX)
Estimated 5-Yr. Net Flows (millions): $28,759
5-Yr. Return: 3.03%
Expense Ratio: 0.09%
Net Assets (millions): $109,049
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Metropolitan West Total Return Bd M (MWTRX)
Estimated 5-Yr. Net Flows (millions): $6,882
5-Yr. Return: 4.43%
Expense Ratio: 0.67%
Net Assets (millions): $81,411
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Vanguard Institutional Index I (VINIX)
Estimated 5-Yr. Net Flows (millions): $4,467
5-Yr. Return: 12.54%
Expense Ratio: 0.04%
Net Assets (millions): $208,758
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American Funds American Balanced A (ABALX)
Estimated 5-Yr. Net Flows (millions): $3,855
5-Yr. Return: 9.83%
Expense Ratio: 0.58%
Net Assets (millions): $97,651
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Franklin Income A (FKINX)
Estimated 5-Yr. Net Flows (millions): -$1,630
5-Yr. Return: 5.09%
Expense Ratio: 0.61%
Net Assets (millions): $79,657
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American Funds Income Fund of Amer A (AMECX)
Estimated 5-Yr. Net Flows (millions): -$4,764
5-Yr. Return: 8.34%
Expense Ratio: 0.56%
Net Assets (millions): $99,420
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American Funds Capital Income Bldr A (CAIBX)
Estimated 5-Yr. Net Flows (millions): -$6,454
5-Yr. Return: 6.46%
Expense Ratio: 0.59%
Net Assets (millions): $99,575
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Vanguard Total Bond Market Index Inv (VBMFX)
Estimated 5-Yr. Net Flows (millions): -$7,456
5-Yr. Return: 3.02%
Expense Ratio: 0.16%
Net Assets (millions): $174,848
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American Funds Washington Mutual A (AWSHX)
Estimated 5-Yr. Net Flows (millions): -$12,743
5-Yr. Return: 12.02%
Expense Ratio: 0.58%
Net Assets (millions): $80,904
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American Funds Europacific Growth A (AEPGX)
Estimated 5-Yr. Net Flows (millions): -$14,947
5-Yr. Return: 3.63%
Expense Ratio: 0.83%
Net Assets (millions): $124,470
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Vanguard Total Stock Mkt Idx Inv (VTSMX)
Estimated 5-Yr. Net Flows (millions): -$16,544
5-Yr. Return: 12.03%
Expense Ratio: 0.16%
Net Assets (millions): $468,740
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American Funds Invmt Co of Amer A (AIVSX)
Estimated 5-Yr. Net Flows (millions): -$17,083
5-Yr. Return: 10.69%
Expense Ratio: 0.58%
Net Assets (millions): $76,849
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American Funds Capital World Growth & Income A (CWGIX)
Estimated 5-Yr. Net Flows (millions): -$17,442
5-Yr. Return: 6.95%
Expense Ratio: 0.77%
Net Assets (millions): $81,986
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Vanguard 500 Index Inv (VFINX)
Estimated 5-Yr. Net Flows (millions): -$19,097
5-Yr. Return: 12.40%
Expense Ratio: 0.16%
Net Assets (millions): $260.418
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Fidelity 500 Index Investor (FUSEX)
Estimated 5-Yr. Net Flows (millions): -$19,257
5-Yr. Return: 12.48%
Expense Ratio: 0.09%
Net Assets (millions): $102,856
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Vanguard Wellington Inv (VWELX)
Estimated 5-Yr. Net Flows (millions): -$19,420
5-Yr. Return: 8.98%
Expense Ratio: 0.26%
Net Assets (millions): $92,217
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Fidelity Contrafund (FCNTX)
Estimated 5-Yr. Net Flows (millions): -$21,812
5-Yr. Return: 12.68%
Expense Ratio: 0.71%
Net Assets (millions): $108,379
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American Funds Growth Fund of Amer A (AGTHX)
Estimated 5-Yr. Net Flows (millions): -$23,999
5-Yr. Return: 12.05%
Expense Ratio: 0.65%
Net Assets (millions): $143,470
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PIMCO Total Return Instl (PTTRX)
Estimated 5-Yr. Net Flows (millions): -$107,226
5-Yr. Return: 3.52%
Expense Ratio: 0.46%
Net Assets (millions): $84,392