U.S. Mutual Funds Reaping Record Deposits as Markets Rise
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Individual investors rushed into stocks and bonds in January, setting the stage for the biggest month on record for deposits into U.S. mutual funds.
Long-term funds, which exclude money-market vehicles, attracted $64.8 billion in the first three weeks of the month, according to the Washington-based Investment Company Institute. The previous record was $52.6 billion for all of May 2009, according to the ICI, whose data goes back to 1984.
Signs of improvement in the U.S. economy and a rising stock market that pushed the Dow Jones Industrial Average above 14,000 today for the first time since 2007 have prompted Americans to step up their investments. Equity mutual funds gathered $29.9 billion in January’s first three weeks, more than for any full month since 2006.
“When we got beyond the fiscal cliff it unlocked a lot of money,” David Kelly, chief global strategist for New York-based JPMorgan Funds, said in a telephone interview. “That was a big risk that was removed.”
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