Net U.S. investor flows to U.S. domestic stock mutual funds surged to an estimated $21 billion in January, the first time that market segment pulled in more than $20 billion in almost seven years, according to a news release Friday from Strategic Insight.
January also marked the first net inflows for U.S. domestic stock funds since April 2010, which had a net gain of $11 billion.
In the news release, Avi Nachmany, the firm's director of research, said: “The interest in stocks is being shored up by a new year, stock prices which have doubled since their bottom in early 2009, and a near consensus about the relative advantage of U.S. large-cap stocks.”
Mr. Nachmany couldn't immediately be reached for further comment.
For the month, overall inflows into long-term U.S. stock and bond mutual funds, excluding exchange-traded funds, came to roughly $34 billion, more than reversing net outflows of $16 billion seen in December.
By asset segment, international equity mutual funds had net inflows of $12.5 billion and taxable bond funds, $12.8 billion. Tax-free bond funds, still beset by concerns about the fiscal resilience of many public issuers, saw net outflows of $12.7 billion.