Mutual Funds Post Years Most Meager Inflow

Mutual funds managed to bounce back from the massive $4.9 billion outflow they endured mid May, according to the latest statistics from the Investment Company Institute. For the week ended May 30, investors steered an estimated $1.63 billion into mutual funds, a reversal from the previous week’s sizable outflow. Still, the infusion was the smallest so far this year.

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Equity funds, which have taken the brunt of the outflows all year, surprisingly took in the bulk of the $1.63 billion this time, posting an estimated $1.49 billion in inflows for the week. Of the $1.49 billion, $807 million went to U.S. stock funds, reversing a 15-week stint of consecutive outflows totaling more than $45 billion.

In another stunning reversal, bond funds posted their first outflow this year, losing an estimated $317 million. Taxable bond funds lost approximately $920 million in outflows while municipal bond funds took in $603 million.

Hybrid funds — those that invest in both stocks and fixed income securities — received $460 million in estimated inflows. They posted $695 million in outflows a week earlier.

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.