Investing

Mutual Funds Withdrawals Continue (FAIRX, FMAGX, AGTHX, EILVX)

Throughout July stock mutual fund capital outflows have continued the pattern established in June, when $18 billion in outflows was logged. Worries over Europe’s debt troubles and the threat of a US debt default got most of the blame. Stock mutual funds saw $1.5 billion disappear last week alone.

Four funds that have experienced significant withdrawals are Fairholme (FAIRX), Fidelity Magellan (FMAGX), American Fund Growth Fund of America A (AGTHX), and Eaton Vance Large-Cap Value I (EILVX).

Fairholme (FAIRX) suffered net outflows of $235 million last week, keeping up its string of five straight months of outflows. The fund has dropped more than $4 billion in assets this year.

Fidelity Magellan (FMAGX) is getting a much needed boost from its holding in Medco Health Solutions, the pharmacy benefits management company that is merging with Express Scripts. Fund outflows so far this year total $2.34 billion.

American Fund Growth Fund of America (AGTHX) may be the biggest loser of all. The fund’s outflows year-to-date total $9.54 billion, but with total assets of $157 billion the fund remains sound.

Eaton Vance Large-Cap Value I (EILVX) dropped about $250 million in assets last week, and the fund has been downgraded by Morningstar from a 3-star to a 2-star rating.

The total outflow from equity mutual funds last week was $950 million according to Lipper. Money flowed toward bond funds and munis, while money market funds experienced withdrawals of $22.5 billion.

Capital flows are heading again toward gold, silver, and equities, where returns are generally better. ETFs, with the exception of the SPDR S&P 500 (NYSE: SPY) which dropped $2 billion last week, are also generally more attractive than mutual funds.

Paul Ausick

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.