Fund inflows continued to climb for the third straight month, and Manhattan-based consulting and research firm Strategic Insight
is heralding this boost in assets as a harbinger of long-term success for the fund industry. According to Strategic Insight and ICI data, the second quarter saw total net inflows of roughly $136 billion into bond and stock mutual funds, and net inflows to ETFs added another $14 billion in assets. This is the best level of quarterly net inflows since the first quarter of 2007, when stock and bonds funds drew in nearly $150 billion.
| Loren Fox|
Senior Research Analyst
Bond funds alone drew in $90 billion in the second quarter, and most of that money went into taxable bond funds. Equity funds drew in approximately $47 billion in net flows, and roughly $15 billion of the total equity inflows went towards international stock funds.
The data, Strategic Insight notes, can be seen as a sign that equity funds are poised for a long-term recovery.
"Including June, equity funds have now enjoyed three straight months of solid inflows. Investors are tiptoeing back into riskier asset classes," said SI senior research analyst Loren Fox
. "And while the recent stock market retreat slowed equity fund inflows, they would rebound if the second half of 2009 experienced an economic recovery."
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