RPT-UPDATE 2-Flight to quality as money funds rise, stocks dive

(Repeats story initially transmitted late Thursday)

By Jennifer Ablan

NEW YORK, Oct 10 (Reuters) - Scrambling for safety and bracing for renewed deterioration in the global economic outlook, investors pulled a net $43.3 billion from all equity mutual funds so far in October while pouring nearly $60 billion in money-market mutual funds.

The flight of funds reflects investors' rising fears of recession. The Dow Jones industrial average .DJI tumbled 678.91 points on Thursday to end below 9,000 -- or down about 40 percent from its record closing high at 14,164.53 a year ago on Oct. 9, 2007.

Funds investing mostly in U.S. stocks had a net outflow of $27.3 billion so far this month, while funds investing mostly in non-U.S. stocks had an outflow of $16 billion, according to estimates by TrimTabs Investment Research on Thursday.

In no uncertain terms, investors took no risk in the latest week.

Total U.S. money market mutual fund assets increased by $58.54 billion to $3.458 trillion in the week ended Oct. 8, the Investment Company Institute said on Thursday.

Retail money-market fund assets rose by $18.96 billion to $1.258 trillion, the industry trade group said in its weekly report. Institutional money market fund assets rose by $39.58 billion to $2.200 trillion in the week, it said.

Notably, bond funds have not benefited from the flight to quality as many had anticipated.

Bond funds had a net outflow of $8.8 billion so far in October, following net outflows of $8.1 billion the previous week, TrimTabs Investment Research added.

"It is extremely unusual to see this drawdown, not only in stock funds but bond funds," Conrad Gann, TrimTabs' president and chief operating officer, said in an interview. "Investors are putting their money in savings accounts, insured checking deposits and any fund that has a 'Treasury sticker' on it -- anything else isn't being considered," he added.

In September, investors pulled a record $72 billion from U.S.-listed stock and bond mutual funds, as shareholders took $43.5 billion from stock funds last month and $28.8 billion from bond funds, according TrimTabs.

TrimTabs, which reports exchange-traded fund activity separately, said that ETFs investing in U.S. stocks had inflows of $4 billion in the latest week ending Wednesday, following inflows of $15 billion in the previous week.

TrimTabs is a research firm headquartered in Sausalito, California. (Reporting by Jennifer Ablan; Editing by Jan Paschal)