US-based mutual fund investors have pulled more than US$10 billion out of bonds funds on 5 June 2013, due to fears around the US Federal Reserve starting to wind down its bond-buying program, Investment Company Institute (ICI) has reported.
According to the report, total estimated outflows for the week from long-term mutual funds were US$11.53 billion similar to the figure in October 2012. Bond funds inflows when compared to outflows were US$1.36 billion.
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The report shows that taxable bond funds saw a withdrawal of US$8.68 billion, while municipal bond funds had outflows of US US$2.26 billion.
Equity funds saw redemptions of US$942 million for the week, compared to outflows of US$1.00 billion in the previous week, while domestic equity funds saw outflows of US$2.52 billion and world equity funds saw inflows of US$1.58 billion, ICI reported.
Hybrid funds, which can invest in stocks and fixed income securities, reaped modest inflows of US$347 million for the week, compared to inflows of US$1.13 billion in the previous week.
In the week ended 24 April 2013, mutual funds investors pulled out US$608 million out of funds that hold only US stocks, according to data released by ICI.
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By GlobalDataThe move came after the funds attracted US$1.97 billion in new cash the prior week.
