Investors pull $1.4 billion from mutual funds

Long-term mutual funds recorded outflows of $1.37 billion last week, as investors pulled out of hybrid and domestic stock funds, says the Investment Company Institute.

While the funds had mostly seen inflows this year, cautious investors have continually yanked money from U.S. stock funds due to unsteady markets.

Last week, the stock funds saw major outflows of $1.73 billion, compared with prior-week inflows of $1.58 billion—U.S. stock funds slid $3.08 billion, while foreign stock funds actually gained $1.35 billion.

One Wall Street Journal reader wonders why investors are buying into mutual funds at all when there are better options.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.