NEW YORK, Jan 9 Investors in U.S.-based mutual funds pulled the most cash out of stock funds in three months in the latest week as U.S. lawmakers reached a deal to avert a "fiscal cliff" of tax hikes and spending cuts, data from the Investment Company Institute showed on Wednesday. Investors pulled an estimated $9.5 billion out of stock funds in the week ended Jan. 2, the most since early October, said ICI, a U.S. mutual fund trade organization. The amount was more than double the previous week's outflows of $3.8 billion. Demand for bond funds grew, with investors pumping $3.21 billion into the funds, up modestly from the previous week's inflows of $2.56 billion. The outflows from stock funds came despite the benchmark S&P 500's 3 percent gain over the reporting period. Markets rallied after President Barack Obama and Congress reached a budget deal, although the agreement delayed spending cuts by two months. Congress must also raise the $16.4 trillion U.S. debt ceiling next month or risk default. Hybrid funds, which can invest in stocks and fixed-income securities, suffered minor outflows of $152 million over the weekly period after attracting $774 million in new cash the prior week. The following table is a breakdown of ICI flows for the past five weeks (all figures in millions of dollars): 12/5/12 12/12/12 12/19/12 12/26/12 1/2/2013 Total Equity -7,180 -8,479 -5,004 -3,789 -9,501 Domestic -5,858 -7,233 -5,292 -3,870 -8,288 World -1,321 -1,246 289 81 -1,213 Hybrid* -71 119 -20 774 -152 Total Bond 5,157 1,787 427 2,559 3,214 Taxable 4,084 1,576 3,690 3,260 2,924 Municipal 1,074 211 -3,263 -701 291 Total -2,093 -6,572 -4,598 -455 -6,439 *Hybrid funds can invest in stocks and/or fixed income securities.
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