Thursday, September 30, 2010

21 Weeks And 73 Billion Redeemed From Equity Funds

Here's the latest data from ICI.




Yeah, 21 consecutive weeks of redemptions of equity mutual funds.


Past postings tracking the fund outflows.

3 comments:

bullbear said...

It has been a tough decade for fellow Americans.

Among my American friends, one has lost his business which he built over the last two decades.

Another has many properties which he is now working very hard to pay off the mortgages over the next many years. He didn't anticipate this to happen.

Many have seen their portfolio investments decimated and their investment plans in disarray.

Given such a scenario, perhaps it may not be surprising that a significant number of these equity investors may never return to the stock market for many years to come. I remember Elis Traub (of NAIC fame) was out of the stock market for 15 years after he lost a lot of money in the stock market, only returning to stocks when he was in his fifties.

Here is another article which will likely push many fence-sitter to opt out of the mutual fund industry too:

http://blogs.telegraph.co.uk/finance/ianmcowie/100007842/warren-buffett-fund-illustrates-rip-off-management-charges/

Perhaps, there is no other way but to acquire the necessary education to do one's own investing.

Moolah said...

Eh? Suddenly the high load charges of the mutual funds 'suddenly became an issue?

So mutual funds is a rip off and that's why Americans have decided it's wise to exit from these funds for the past 21 weeks.

Market up or down... just sell.

ps: I am not obsessed. Are you? Yeah I hope you are not obsessed that I am making the update.

:-)

Moolah said...

Ok let me ass-u-me that this is the reason Americans are redeeming their money from equity funds.

Yes, they finally understand that stock mutual fund investments is a terrible idea.

The load charges are high, they are a rip-off.

Not a problem.

It's a valid reasoning.

But then... the timing of it all... such a coincidence eh?

21 weeks and 73 billion bucks!

Did all these money, did all these 73 billion bucks suddenly wake up during this current 21 weeks time frame and realise that it's best to redeem now?