Mutual Fund Outflows Hit One Year High
Equity and bond fund flows around the US presidential election show how fickle the average retail investor can be. Indeed, in the run-up to the election investors sold equity funds and redeployed capital back into bond funds. In the immediate aftermath of the election the opposite occurred, investors, seeking to capitalise on the market rally ploughed money into equity funds while selling bond funds as yields started to rise (while flows into equity funds were positive the rotation from mutual funds to ETFs continued. Mutal funds saw billions in outflows while ETFs attracted cash for a net overall benefit).
