The market began 2010 on a sour note, but that didn't keep U.S. investors away from mutual funds.
The stock market began 2010 on a sour note, with all major indexes off more than 3% for the month of January. But that didn't keep U.S. investors away from mutual funds, which saw total net inflows of $44.5 billion.
U.S. stock funds reversed a four-month slide, taking in roughly $2.7 billion in assets. International-equity funds gathered more than $8.1 billion in assets, the biggest monthly inflow since December 2007.
And bond funds continued to dominate all other asset classes, as investors added $28.0 billion to fixed-income funds in January. Based on total net assets, fixed-income funds represent 30% of the mutual fund market, up from 19% at the end of 2007.
Fidelity Net Inflows Despite Big Outflows in Some Funds
Although U.S. equity funds returned to net inflows in January, large-growth funds continue to bleed assets. The category gave up $876 million in assets for its seventh-straight monthly outflow. Five Fidelity funds topped the list of funds losing assets: Magellan
Despite these notable outflows, the majority of the funds in Fidelity's lineup gathered assets for the month, and the firm managed to register net inflows in January of almost $1.6 billion. Fidelity's target-date series funds took in $787 million in assets, helping to lift the firm into positive territory. Fidelity Strategic Advisers Value
Although the firm experienced almost $16.2 billion in inflows in 2009 and another $1.6 billion in January, Fidelity hasn't come close to making up 2008's outflow of $37.3 billion. The fund family's share of the open-end fund market (based on total net assets) has gradually eroded from 13% in 1999 to just less than 11% today. If you include exchange-traded funds in the mix, Fidelity's current market share stands at 9.5%.