Trends In Mutual Fund Investing
February 2007

Washington, DC, March 29, 2007 - The combined assets of the nation's mutual funds increased by $43.3 billion, or 0.4 percent, to $10.608 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 ICI.

Total Net Assets of Mutual Funds
(billions of dollars)

	Feb 07	Jan 07	% chg	Dec 06
Stock Funds	6,008.6	6,044.5R	-0.6	5,911.6
Hybrid Funds	656.6	660.1R	-0.6	653.1
Taxable Bond Funds	1,171.7	1,143.4R	2.5	1,129.5
Municipal Bond Funds	373.4	366.6R	1.9	364.9
Taxable Money Market Funds	2,018.5	1,977.7R	2.1	1,988.1
Tax-Free Money Market Funds	379.2	372.5R	1.8	366.4
Total	10,608.0	10,564.7R	0.4	10,413.6

R=Revised data

Highlights: Long-term funds - stock, bond, and hybrid funds - had a net inflow of $45.15 billion in February, vs. an inflow of $47.89 billion in January.

Stock funds posted an inflow of $25.62 billion in February, compared with an inflow of $29.21 billion in January. Among stock funds, world equity funds (US funds that invest primarily overseas) posted an inflow of $15.59 billion in February, vs. an inflow of $21.40 billion in January. Funds that invest primarily in the US had an inflow of $10.03 billion in February, vs. an inflow of $7.80 billion in January.

Hybrid funds posted an inflow of $3.53 billion in February, compared with an inflow of $3.59 billion in January.

Bond funds had an inflow of $15.99 billion in February, compared with an inflow of $15.09 billion in January. Taxable bond funds had an inflow of $12.11 billion in February, vs. an inflow of $12.27 billion in January. Municipal bond funds had an inflow of $3.89 billion in February, compared with an inflow of $2.82 billion in January.

Money market funds had an inflow of $34.41 billion in February, compared with an outflow of $10.84 billion in January. Funds offered primarily to institutions had an inflow of $26.26 billion. Funds offered primarily to individuals had an inflow of $8.16 billion.

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

	Feb 2007	Jan 2007	YTD 2007	YTD 2006
New Sales	122,440	144,172R	266,612	225,508R
Redemptions	-95,214	-114,645R	-209,859	-168,900R
Exchanges In	18,196	20,867R	39,062	41,855R
Exchanges Out	-19,800	-21,189R	-40,989	-39,536R
Net New Cash Flow	25,622	29,205R	54,826	58,927R

Hybrid Mutual Funds

New Sales	12,587	14,855R	27,442	17,853
Redemptions	-9,097	-11,442R	-20,539	-16,154
Exchanges In	1,567	1,902R	3,469	2,811
Exchanges Out	-1,525	-1,729R	-3,254	-3,864
Net New Cash Flow	3,532	3,587R	7,119	646

Taxable Bond Mutual Funds

New Sales	31,406	35,008R	66,413	53,565R
Redemptions	-19,988	-23,617R	-43,606	-40,744R
Exchanges In	4,236	4,952R	9,188	7,570
Exchanges Out	-3,548	-4,068R	-7,615	-8,368
Net New Cash Flow	12,106	12,274R	24,380	12,024R

Municipal Bond Mutual Funds

New Sales	8,049	7,778R	15,827	13,453
Redemptions	-4,238	-5,068R	-9,306	-8,703
Exchanges In	909	1,138	2,047	1,943
Exchanges Out	-833	-1,027R	-1,860	-1,784
Net New Cash Flow	3,888	2,820R	6,708	4,909

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

Feb 07	Jan 07	YTD 2007	YTD 2006
34,411	-10,838R	23,572	794

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

Feb 07	Jan 07	Feb 06
3.9%	4.0%	4.2%

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

Feb 07	Jan 07	Feb 06
19.5%	19.1%R	18.9%R

*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 07	Jan 07	Feb 06
23.6%	23.1%	23.1%

*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 07	Jan 07	Feb 06
Stock Funds	4,793	4,788R	4,592
Hybrid Funds	486	499R	510
Taxable Bond Funds	1,285	1,286R	1,274R
Municipal Bond Funds	709	710R	740
Taxable Money Market Funds	580	573R	589
Tax-free Money Market Funds	269	273	275
Total	8,122	8,129R	7,980R

R=Revised data