Key Takeaways
Equity mutual funds broke an almost year-long streak of weekly outflows as investors added a rare $1.2 billion into these products in the week ended February 10.
There have been only 14 weeks since the beginning of 2018 when equity mutual fund managers collectively had fresh cash to work with instead of dealing with redemptions.
In the last three calendar years, investors pulled $1.3 trillion out of equity mutual funds, with $1.1 trillion flowing into ETFs. CFRA does not expect the momentum to end as more asset managers are offering investors a choice of structures run by the same managers.
Fundamental Context
After 44 consecutive weeks of outflows, equity mutual funds gathered net new money. Equity mutual funds gathered $1.24 billion of net inflows in the week ended February 10, according to data from Investment Company Institute (ICI), an industry group representing mutual funds, ETFs, and other investment companies. This rare occurrence was driven by demand fo