The combined assets of the nation’s mutual funds increased by $486.2 billion, or 4.5%, to $11.267 trillion in September, as investors continued to add to long-term bond funds and pull money out of stock and money market funds, the Investment Company Institute said Thursday. 

Stock funds saw $11.16 billion walk out the door during the money, following $16.50 billion of redemption in August.  Funds that invest primarily overseas pulled in $3.54 billion of new money, after losing $943 million to redemptions in August. Funds that invest primarily in the U.S. saw $14.70 billion walk out the door, slightly less than the $15.55 billion in August. 

Nevertheless, total assets in stock funds rose 9.3% during the month of September to $5.15 trillion, as market appreciation offset the impact of redemptions.

Investors added $1.87 billion to hybrid funds, which invest in both stocks and bonds, after pulling out $782 million in August. After taking into account market appreciation, assets in hybrid funds rose 5.8% during the month to $691 billion.

Bond funds took in $26.49 billion of new money in September, down from $30.81 billion in August. The bulk of that was added to taxable bond funds, which took in $24.21 billion in September, down slightly from $25.71 billion in August.  Investors also added $2.29 billion to municipal bond funds in September, down from $5.11 billion in August.

Total assets in taxable long-term bond fund rose 2% to $2.11 trillion and total assets in long-term municipal bond funds rose by just 0.4% to $515.2 billion.

Money market funds lost $32.34 billion to redemptions in September, after taking in $19.07 billion in August. Roughly half of redemptions, or $16.85 billion, were from funds offered primarily to institutions, while another $15.49 billion came from funds offered primarily to individuals.

 

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