Investors' Love Affair With Income Continues
Fund analysis traffic for 2012 reflects yearning for yield.
For anyone looking for further evidence that many investors remain fixated on yield, a quick glance at the list of the most visited Fund Analysis pages on Morningstar.com last year should provide proof. Of the 10 most visited mutual fund Analyst Reports in 2012, all had an income bent of some kind, with nary a pure speculative play in the bunch. The top 10 includes three income-focused equity funds, four bond funds, and three allocation funds that hold a substantial portion of assets outside of equities.
Not that these results should come as any great surprise. The Federal Reserve's low-interest-rate policies, along with lingering skittishness among some investors over equities, have caused a mad scramble for yield, whether it be from the relative safety of fixed income or from less volatile equity fare such as dividend-paying stocks. In fact, despite very strong equity market performance, investors continued their march out of stock mutual funds in 2012, taking $117 billion from U.S. stock funds for the year while adding $263 billion to taxable-bond funds as part of a trend that started during the financial crisis.
Adam Zoll does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.