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Morningstar Minute: Fund Flows a Good Guideline for Risk

As asset flows into equity funds continue to surge, it can be a gauge of performance chasing or risk investors are taking on right now.

The Morningstar Minute is our quick take on investments, the market, economic indicators, and more. Join us every day for fresh insights from our analyst team.

Shannon Zimmerman: Fund flows are estimates of the money that investors are sending into mutual funds to invest in the funds or are redeeming in the form of cashing out the shares that they have. You can learn a lot from fund flows in terms of investors' appetite for risk. And 2013 was a remarkable year for fund flows, a record-setting year on a worldwide basis and also here just in the U.S.