Trends in Mutual Fund Investing
November 2001

Washington, DC, December 27, 2001 - The combined assets of the nation's mutual funds increased by 4.7 percent to $6.927 trillion in November, 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.

Here is how the assets of the six major fund categories changed in the past month:

Net Assets of Mutual Funds
(billions of dollars)

	Nov 01	Oct 01	% chg	Dec 00
Stock Funds	3,348.7	3,111.6R	7.6	3,962.3
Hybrid Funds	342.9	330.3R	3.8	349.7
Taxable Bond Funds	634.5	633.5R	0.2	530.1
Municipal Bond Funds	299.1	301.6R	-0.8	277.9
Taxable Money Market Funds	2,027.8	1,973.3R	2.8	1,607.2
Tax-Free Money Market Funds	273.8	265.3R	3.2	238.1
Total	6,926.7	6,615.5R	4.7	6,965.2

R=revised data

Highlights: Stock funds had an inflow of $14.94 billion last month, compared with an inflow of $923 million in October. Domestic funds had an inflow of $13.08 billion in November, compared with an inflow of $5.19 billion in October. Stock funds that invest overseas had an inflow of $1.87 billion in November, compared with an outflow of $4.26 billion in October.

Bond funds had an inflow of $6.55 billion in November, compared with an inflow of $13.52 billion in October.

Money market funds had cash flow of $60.24 billion in November, compared with cash flow of $73.85 billion in October. Of the November cash flow, $62.1 billion was placed in funds that are offered primarily to institutions. Funds that are offered primarily to individuals had an outflow of $1.8 billion. Through November, cash flow into institutional money funds accounted for $353.11 billion of the total money fund cash flow of $400.07 billion. Institutional investors, such as corporations, use these funds as a cash management tool and have been taking advantage of falling rates in alternative investments.

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

	Nov 2001	Oct 2001	YTD 2001	YTD 2000
New Sales	74,612	76,198R	870,872	1,222,137R
Redemptions	-63,825	-72,788R	-813,158	-950,816R
Net Exchanges	4,158	-2,488R	-28,454	26,536R
Net New Cash Flow	14,944	923R	29,261	297,857R

Hybrid Mutual Funds

	Nov 2001	Oct 2001	YTD 2001	YTD 2000
New Sales	5,184	5,976R	62,392	53,211R
Redemptions	-4,493	-4,537R	-55,573	-68,602R
Net Exchanges	309	106R	218	-14,371
Net New Cash Flow	1,000	1,546R	7,037	-29,761R

Taxable Bond Mutual Funds

	Nov 2001	Oct 2001	YTD 2001	YTD 2000
New Sales	22,570	25,201R	220,082	129,706R
Redemptions	-16,842	-15,976R	-157,242	-148,631R
Net Exchanges	-24	2,383R	13,668	-15,087R
Net New Cash Flow	5,704	11,609R	76,507	-34,011R

Municipal Bond Mutual Funds

	Nov 2001	Oct 2001	YTD 2001	YTD 2000
New Sales	4,831	5,190R	51,659	36,858R
Redemptions	-3,783	-3,750R	-40,557	-49,034R
Net Exchanges	-198	469R	1,385	-2,185
Net New Cash Flow	850	1,909R	12,487	-14,361R

R=revised data

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

Nov 01	Oct 01	YTD 2001	YTD 2000
60,239	73,852R	400,067	142,969

R=revised data

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

Nov 01	Oct 01	Nov 00
5.6%	5.6%	6.5%

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

Nov 01	Oct 01	Nov 00
25.0%	24.6%R	27.5%

*Redemptions 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

	Nov 01	Oct 01	Nov 00
Stock Funds	4,681	4,686R	4,329R
Hybrid Funds	489	490	519R
Taxable Bond Funds	1,285	1,290R	1,351
Municipal Bond Funds	816	820	876R
Taxable Money Market Funds	685	684R	702
Tax-free Money Market Funds	326	325R	331R
Total	8,282	8,295R	8,108R

R=revised data