NEW YORK (Reuters) - Investors in U.S-based mutual funds sent $2.9 billion into stock funds in the latest week as the federal government ended a shut-down and averted a debt default, data from the Investment Company Institute showed on Wednesday.
Inflows into stock funds in the week ended October 16 marked a dramatic reversal from the previous three weeks, when investors removed billions of dollars from those funds as concern rose that Congress would not raise the $16.7 trillion U.S. debt ceiling by the October 17 deadline.
Investors meanwhile yanked $5.7 billion from bond funds over the weekly period, marking the biggest outflow from the funds in four weeks and more than doubling the prior week’s outflows of $2.55 billion, data from the U.S. mutual fund trade organization showed.
Funds that hold U.S. stocks had inflows of $839 million. Similarly, funds that hold stocks of companies outside the United States saw inflows of roughly $2 billion.
Hybrid funds, which can invest in stocks and fixed income securities, experienced inflows of $618 million in new cash.
Reporting by Katya Wachtel; Editing by Leslie Gevirtz