Mutual fund assets fall nearly 3% in November

The nation's mutual funds saw holdings shrank by $262 billion last month, falling at a slower pace than they did in October.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Lara Moscrip, CNNMoney.com contributing writer

What was the biggest business news story of 2008?
  • Auto industry meltdown
  • Bailout of Wall Street
  • Foreclosure storm
  • Oil price's wild ride
  • Stock market meltdown
  • It's official: U.S. in recession
CDs & Money Market
MMA 0.40%
$10K MMA 0.36%
6 month CD 0.39%
1 yr CD 0.70%
5 yr CD 1.55%

Find personalized rates:
 

Rates provided by Bankrate.com.

NEW YORK (CNNMoney.com) -- The combined assets of the nation's mutual funds decreased by nearly 3% in November, according to a report released Tuesday.

Since the start of the recession in December 2007, the combined assets of U.S. mutual funds have fallen 22.2%, according to the survey from the Investment Company Institute, a national association of U.S. investment companies.

The mutual fund assets, which include stock funds, hybrid funds, bond funds and money market funds, decreased by $261.65 billion to $9.355 trillion between October and November, according to the report.

Long-term funds, which include stock, bond and hybrid funds, saw $41.31 billion leave their coffers in November. However, that decline was just one third of the $127.55 billion that exited long-term funds in October.

Investors were spooked in October when the Treasury Department, a week after Congress approved the $700 billion bailout plan, switched gears from its initial intent to buy up banks' mortgage-backed securities and instead decided to make equity-stake purchases in banks. The market shunned Treasury's strategy shift.

In the eight market sessions that spanned the first 10 days of October, the Dow fell 22%, a drop not seen since the 1930s.

Among the long-term funds, stock mutual funds saw the largest outflows in November. These funds posted an outflow of $21.74 billion in November, down from an outflow of $72.44 billion in October.

After stock mutual funds, the second greatest outflows came from taxable bond mutual funds, which were down $13.36 billion in November, compared with a dip of $32.36 billion in October.

There were about 8,000 mutual funds surveyed in this report, virtually the same number surveyed in October 2008.  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
5 ways retailers are tracking you If you think pesky salespeople are invading your personal space, check out these 5 technologies that are tracking your movements throughout a store. More
Moto X vs. Droid Turbo: Which Droid should you buy? Motorola has made the two best Android smartphones this year. Here's how they stack up. More
My part-time job is a dead end, but it's all I can find CNNMoney profiles 4 of America's 7 million part-time workers unable to find full-time jobs. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.