Trends In Mutual Fund Investing
February 2004

Washington, DC, March 30, 2004 - The combined assets of the nation's mutual funds increased by $97.0 billion, or 1.3 percent, to $7.634 trillion in February, according to the Investment Company Institute's official survey of the mutual fund industry. In the survey, mutual fund companies report actual assets, sales and redemptions to the ICI.

Net Assets of Mutual Funds
(billions of dollars)

	Feb 04	Jan 04	% chg	Dec 03
Stock Funds	3,896.3	3,805.1R	2.4	3,684.8
Hybrid Funds	458.6	447.8R	2.4	436.7
Taxable Bond Funds	921.9	914.8R	0.8	906.8
Municipal Bond Funds	340.7	335.1R	1.7	334.1
Taxable Money Market Funds	1,716.0	1,734.8R	-1.1	1,763.3
Tax-Free Money Market Funds	300.5	299.5R	0.3	288.4
Total	7,634.0	7,537.0R	1.3	7,414.1

R=revised data

Highlights: Long-term funds - stock, bond, and hybrid funds - collectively had a net inflow of $32.7 billion in February, compared with the inflow of $48.2 billion in January.

Stock funds posted a $26.2 billion inflow in February, compared with the $43.0 billion inflow posted in January. Of that total, domestic stock funds had an inflow of $18.1 billion in February, compared with an inflow of $31.5 billion in January. Stock funds that invest overseas experienced an inflow of $8.1 billion in February, a decrease from the $11.5 billion inflow in January.

Bond funds had an inflow of $1.5 billion in February, compared with an outflow of $318 million in January. Taxable bond funds had an inflow of $922 million. Municipal bond funds had an inflow of $538 million.

Money market funds had an outflow of $21.0 billion in February, compared with an outflow of $19.8 billion in January. Funds offered primarily to institutions had an outflow of $12.0 billion in February. Funds offered primarily to individuals had an outflow of $9.0 billion in February.

Now available online. The Investment Company Institute's in-depth review and analysis: Mutual Fund and Economic Developments in 2003

Net New Cash Flow of Long-term Funds
(millions of dollars)

	Feb 2004	Jan 2004	YTD 2004	YTD 2003
New Sales	82,319	104,623R	186,942	121,491R
Redemptions	-58,447	-69,039R	-127,486	-122,395R
Exchanges In	14,194	22,094R	36,289	41,254R
Exchanges Out	-11,837	-14,697	-26,534	-51,498R
Net New Cash Flow	26,230	42,981R	69,211	-11,148R

Hybrid Mutual Funds

New Sales	10,096	11,925R	22,021	13,347R
Redemptions	-5,576	-7,346R	-12,922	-11,999R
Exchanges In	1,515	2,222R	3,737	2,521R
Exchanges Out	-993	-1,281	-2,274	-2,699R
Net New Cash Flow	5,042	5,520R	10,562	1,169R

Taxable Bond Mutual Funds

New Sales	26,537	29,680R	56,217	65,660R
Redemptions	-24,397	-27,477R	-51,874	-40,588R
Exchanges In	4,095	4,783R	8,878	16,944
Exchanges Out	-5,313	-7,088R	-12,401	-11,436
Net New Cash Flow	922	-103R	820	30,579R

Municipal Bond Mutual Funds

New Sales	4,971	5,106R	10,077	10,867
Redemptions	-4,435	-5,081	-9,516	-8,883
Exchanges In	788	1,071	1,859	2,945
Exchanges Out	-786	-1,311	-2,097	-3,004
Net New Cash Flow	538	-215R	323	1,925

R=revised data

Net New Cash Flow of Money Market Funds
(millions of dollars)

Feb 04	Jan 04	YTD 04	YTD 03
-20,956	-19,776R	-40,732	-40,646

R=revised data

Liquid Assets of Stock Mutual Funds
(percent of total net assets)

Feb 04	Jan 04	Feb 03
4.4%	4.4%	4.3%

Annual Redemptions from Stock Funds
(percent of average net assets*)

Feb 04	Jan 04	Feb 03
22.3%	22.2%	29.4%

*Redemptions over the most recent twelve-month period as a percent of average of total net assets at beginning and ending of period.

Annual Redemptions and Redemption Exchanges from Stock Funds
(percent of average net assets*)

Feb 04	Jan 04	Feb 03
28.4%	28.8%	41.9%

*Redemptions and Redemption Exchanges over the most recent twelve-month period as a percent of average of total net assets at beginning and ending of period.

Number of Mutual Funds in this Report

	Feb 04	Jan 04	Feb 03
Stock Funds	4,624	4,596R	4,726R
Hybrid Funds	506	505R	476R
Taxable Bond Funds	1,271	1,268	1,269R
Municipal Bond Funds	778	779R	770
Taxable Money Market Funds	662	660	676
Tax-free Money Market Funds	312	312	311
Total	8,153	8,120R	8,228R

R=revised data