Tech, Growth Funds Ruled in '99, Trade Group Confirms
Last year was one of haves and have nots for mutual-fund companies. If you had tech and growth stocks, you most likely had new cash come in. If you didn't, you watched assets flee.
Mutual funds with big stakes in technology raked in new money last year, while bond, hybrid, and more-conservative funds that eschewed the so-called "new-economy" and growth stocks bled assets, the Investment Company Institute reported Wednesday. Thanks to a market that favored technology, communication, and large-company stocks, offerings that focused on those sectors snatched a disproportionate helping of the total amount of new money, minus redemptions, in 1999, according the annual fund-flow report issued by the mutual-fund industry trade group.
For example, out of a sample of 1,520 domestic-equity funds, the 10% with the highest level of net new cash flows kept roughly 30% of their assets in technology stocks, about double the stakes of the 10% of funds with the lowest net flows, the ICI said.