Some Investors Pulling Out of U.S. Equity Mutual Funds

New data shows that investors withdrew $8.3 billion from U.S. equity mutual funds in June, making it the second consecutive month in which outflows outpaced inflows to these funds.

The funds — which allow investors to buy into a “basket” of stocks picked and traded by a fund manager – are traditionally a popular option for people to invest retirement savings.

However, investment research Morningstar found that the withdrawals during June represented U.S. equity funds’ largest outflow in 18 months.

Morningstar said that inflows to international-equity funds and taxable-bond funds more than offset the outflows for U.S. equity funds. Overall, inflows to long-term mutual funds reached $24.0 billion during the month.

Mutual fund assets reached $11.7 trillion in June, which Morningstar said represents an increase of more than 40% since their peak before the financial crisis.

Clearly, this form of investing is still quite popular.


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