An uptick in confidence amid positive indicators on the economy meant that investors cautiously put an estimated $46 billion in net inflows into stock and bond mutual funds in the US in February 2012, a new report discloses.
Strategic Insight (New York, N.Y.; Stamford, Conn.; Boston, Mass.) published this finding in a new survey of net flows into stocks and mutual funds. The company is a business intelligence provider to the mutual fund industry.
The $46 billion recorded in February, the report says, represents an increase from January, when investors put net $37 billion in flows from long-term funds. February's results were the best monthly net inflows for long-term mutual funds since March 2010, when long-term funds (excluding ETFs and VA funds) saw $49 billion in net inflows, the report finds.
In February, domestic equity funds saw net inflows of nearly $4 billion, during a month when the average US equity fund gained 4% on an asset-weighted basis. The net inflows to domestic equity mutual funds in both January and February (totaling roughly $5 billion) was the first time US equity funds enjoyed net inflows in two straight months since March-April 2011 (when US equity funds drew a combined $6 billion in net inflows).
Illustrating investors' caution, February's US equity inflows were led by equity income funds, with nearly $3 billion of net inflows.
