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US retail investors missed the rally too

Posted by fairval on September 30, 2009

Looks like most retail investors missed the global equity rally. A story in Bloomberg says this about the US market —

Sept. 30 (Bloomberg) — Mutual-fund investors are mostly sitting out the stock-market rally that lifted share prices 57 percent since March, helping bond manager Pacific Investment Management Co. increase sales while American Funds loses assets.

Bond funds attracted net deposits of $209.1 billion in the first eight months of the year while stock funds drew $15.2 billion, according to Morningstar Inc., the Chicago-based research firm that tracks the $10.6 trillion industry. Nine of this year’s 10 best-selling funds buy bonds and only one, Vanguard Total Stock Market Index Fund, focuses on equities.

This is perhaps the regular retail investment behaviour. Shows the benefits of SIP investing


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