Mutual Fund Purchases Rise
Investor purchases of stock and bond mutual funds surged to $29 billion in June from $27 billion in May, led by strong demand for bond funds, the Investment Company Institute reported Thursday.
Though the June total lagged the records set earlier this year--including January’s staggering $32.3 billion in fund purchases--they still were $12 billion above year-earlier levels.
The bulk of June’s gain was in purchases of bond funds, which rose to $18 billion from $16.5 billion in May. Most fund companies say that surge continued in July, as investors disheartened by low money-market and bank yields sought higher yields in longer-term bonds.
July was “probably a record month in the bond business,†said Michael Hines, senior vice president at Fidelity Investments.
Total stock fund purchases in June were $10.9 billion, up only slightly from $10.5 billion in May. An uncertain market kept many investors sidelines in June.
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