Fund investors withdrew $10.38 billion last week

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Mutual fund investors are heading for the exits. They withdrew an estimated net of $10.38 billion in the week that ended last Wednesday, July 27. That’s more than double the amount they took out just the week before, the Investment Company Institute reported Wednesday. 

Stocks:

The largest withdrawal, nearly $8.8 billion, came from domestic equity funds. It was followed by a net $1.3 billion pulled from foreign equity funds, more than four times the amount withdrawn the week before.

All told, the four-week moving average for equity funds — a less volatile measure of fund flows — increased to an average outflow of $6.1 billion. The previous week’s moving average was $4.1 billion.

Bonds:

Investments in bond funds reversed course. Investors cashed out a net $67 million from taxable bond funds after putting in a net $2.1 billion the week before. It marked the first withdrawal from taxable bond funds since January.

Investors also took their money out of municipal bond funds for the first time since May, cashing out a net $147 million compared to adding a net of $226 million the previous week.

The four-week moving average for bond funds remains positive, although it decreased to a net inflow of $3.4 billion from the previous week’s average of $4.1 billion.

The total value of all mutual funds as of the end of June was $12.2 trillion, according to the Investment Company Institute.

Estimated mutual fund flows in millions of dollars.

Hybrid funds are able to invest in stocks and fixed-income investments.

Source: Investment Company Institute