May 29, 2002 — Mutual funds that buy small company stocks continued to attract investments last month, even as the amount of money flowing into funds slowed.
Small-cap funds took in $22.6 billion last month, surpassing inflows into large-cap funds, which netted $16.8 billion, and mid-cap funds, which took in $16.3 billion, according to Financial Research Corp.
Overall, stock and bond funds drew $22 billion last month, down from $33.95 billion in March, but modestly more than their April 2001 intake of $20.85 billion.
Small-cap funds that invest in undervalued stocks, growth stocks, or a combination of both were among the best-selling offerings last month, providing "evidence" that investors are craving the prospects of investing in small companies, the Boston-based financial services consulting company said.
