Trends In Mutual Fund Investing
June 2005

Washington, DC, July 28, 2005 - The combined assets of the nation's mutual funds increased by $92.6 billion, or 1.1 percent, to $8.216 trillion in June, 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)

	June 05	May 05	% chg	Dec 04
Stock Funds	4,469.9	4,406.6R	1.4	4,384.1
Hybrid Funds	545.0	535.9R	1.7	519.3
Taxable Bond Funds	997.4	987.8R	1.0	962.6
Municipal Bond Funds	336.9	334.1R	0.8	327.7
Taxable Money Market Funds	1,546.6	1,543.8	0.2	1,602.8
Tax-Free Money Market Funds	320.5	315.5	1.6	310.3
Total	8,216.3	8,123.7R	1.1	8,106.9

R=revised data

Highlights: Long-term funds - stock, bond, and hybrid funds - collectively had a net inflow of $12.21 billion in June, compared with net inflow of $17.01 billion in May.

Stock funds posted an inflow of $6.13 billion in June, compared with an inflow of $11.21 billion in May. Among stock funds, world equity funds (US funds that invest primarily overseas) posted an inflow of $4.41 billion in June, vs. an inflow of $6.02 billion in May. Funds that invest primarily in the US had an inflow of $1.72 billion in June, compared with an inflow of $5.19 billion in May.

Hybrid funds posted a $2.09 billion net inflow in June, compared with an inflow of $2.29 billion in May.

Bond funds had an inflow of $4.00 billion in June, compared with an inflow of $3.51 billion in May. Taxable bond funds had an inflow of $2.85 billion in June, compared with an inflow of $2.81 billion in May. Municipal bond funds had an inflow of $1.15 billion in June, compared with an inflow of $697 million in May.

Money market funds had an inflow of $4.90 billion in June, compared with an inflow of $13.77 billion in May. Funds offered primarily to institutions had an inflow of $13.24 billion. Funds offered primarily to individuals had an outflow of $8.34 billion.

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

	June 2005	May 2005	YTD 2005	YTD 2004
New Sales	79,539	80,583R	522,956	504,528R
Redemptions	-72,294	-68,597R	-441,203	-395,199R
Exchanges In	11,982	12,884R	85,530	93,726
Exchanges Out	-13,099	-13,660R	-93,830	-84,930R
Net New Cash Flow	6,128	11,210R	73,453	118,124R

Hybrid Mutual Funds

New Sales	9,028	8,595R	59,880	60,746R
Redemptions	-7,160	-6,504R	-40,958	-38,588R
Exchanges In	1,170	1,138R	8,109	9,066R
Exchanges Out	-951	-943	-6,724	-6,698R
Net New Cash Flow	2,087	2,287R	20,307	24,525R

Taxable Bond Mutual Funds

New Sales	24,484	23,383R	154,052	156,557R
Redemptions	-22,186	-21,249R	-141,492	-157,822R
Exchanges In	3,342	3,997R	21,567	25,515R
Exchanges Out	-2,790	-3,318R	-22,091	-35,852R
Net New Cash Flow	2,850	2,814R	12,036	-11,601R

Municipal Bond Mutual Funds

New Sales	5,410	4,772R	29,599	26,830
Redemptions	-4,340	-4,169R	-26,921	-34,511
Exchanges In	716	726	4,614	4,978
Exchanges Out	-641	-632	-4,761	-8,467
Net New Cash Flow	1,145	697	2,531	-11,170

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

June 05	May 05	YTD 05	YTD 04
4,895	13,771	-65,853	-106,033R

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

June 05	May 05	June 04
4.0%	4.1%	4.3%

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

June 05	May 05	June 04
19.6%	19.8%R	21.8%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*)

June 05	May 05	June 04
23.8%	24.0%	26.7%

*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

	June 05	May 05	June 04
Stock Funds	4,515	4,512R	4,564
Hybrid Funds	513	515	510R
Taxable Bond Funds	1,269	1,270	1,273R
Municipal Bond Funds	754	755	782
Taxable Money Market Funds	616	627	656R
Tax-free Money Market Funds	285	300	307R
Total	7,952	7,979R	8,092R

R=revised data