Fund investors withdrew $3.2B from stock funds

Investors are turning negative again on stock mutual funds after the huge sell off in the beginning of the month. They took out a net $3.2 billion from stock funds while adding just $295 million to bond funds in the week ended Aug. 24, the Investment Company Institute said Wednesday.

Notably, the week marked the sixth consecutive week of total net withdrawals from stock and bond mutual funds.

The withdrawal from stock funds came after a cautious depositing of $1.7 billion the week prior. Domestic stock funds were reduced by nearly $2.6 billion and foreign stock funds lost $610 million. The four-week moving average for stock funds, a less volatile measure of fund flows, still showed an average weekly outflow of $11.1 billion, a slight decrease from the previous week’s $12.7 billion.

Investors added a net $295 million to bond mutual funds, compared to previous week’s outflow of $3.1 billion. The four-week moving average for bond funds decreased to an average weekly outflow of $2.5 billion.

Hybrid funds, which invest in both stocks and bonds, attracted a net of $871 million for the week. This was on pace with the $874 million intake in the previous week.

Estimated mutual fund flows in millions of dollars.

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

Source: Investment Company Institute