Mutual funds snubbed by investors for sixth straight year
BY AP Wire Service
Tuesday, January 15, 2013
1/15/13 at 6:55 AM
BOSTON (AP) - Investors pulled money from stock mutual funds in 2012 for the sixth year in a row, despite the stock market's strong performance. Bond funds attracted the most cash since 2009, another illustration of how conservative investors have become with their money since the financial crisis.
A net $90 billion was withdrawn from U.S. stock mutual funds last year, industry consultant Strategic Insight said Monday. The total included $26 billion pulled out in December, the 10th month in a row that withdrawals have exceeded deposits.
The full-year total was the largest since 2008, when $136 billion was removed. Since 2007, the year that the stock market hit a historic high, nearly $405 billion has been withdrawn.
Bond funds attracted $317 billion in new cash in 2012, the most since a record $350 billion was added in 2009. They have taken in nearly $1.14 trillion since 2007.
Original Print Headline: Investors retreat from stock mutual funds