Investors pull $13.0B from stock funds Aug. 3 week

AP News
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Posted: Aug 10, 2011 5:16 PM

In the days leading up to the Aug. 2 debt ceiling showdown in Congress, nervous mutual fund investors pulled money from stock and bond funds at an accelerated pace.

For the week ended Aug. 3, stock fund outflows rose to $13.0 billion, significantly higher than the outflow of $9.3 billion for the week ending July 27, the Investment Company Institute says.

Investors pulled a net of $10.4 billion out of U.S. stock funds during the week.

Bond funds saw outflows totaling $2.8 billion as investor anxiety increased. Just weeks earlier, investors were making weekly net deposits of as much $6 billion in early July.

Total mutual fund outflows for the week were just under $16.9 billion. Funds had posted net inflows of $3 billion in the first week of July.