Mutual Funds Report Largest Weekly Outflow Of 2012

Interest in U.S. stock funds nosedived yet again as investors yanked an estimated $7.51 billion from mutual funds that invest long-term in U.S. stocks, according to statistics from the Investment Company Institute for the week that ended Nov. 20. 

The hefty outflow is on top of the $6.63 billion investors pulled from the funds the week before and the $2.14 billion withdrawn the week prior to that. Since the beginning of the year, investors have withdrawn more than $131 billion from the beleaguered funds.

Non-U.S. funds were not spared the pain, losing an estimated $1.31 billion, slightly less than the $1.75 billion they lost a week earlier, ICI said.

Hybrid funds, which invest in both stocks and fixed income securities, lost an estimated $1.19 billion for the week.

Bonds funds were the only category in positive territory, attracting an estimated $4.5 billion, down 32% from the $6.62 billion they added a week earlier. Of the $4.5 billion, $3.13 billion went to taxable bond funds with the remaining $1.37 billion going to municipal bond funds.

Overall, mutual funds lost an estimated $5.52 billion, the largest weekly outflow so far this year.

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.