Investors Don't Like Mutual Funds Anymore?

USAToday is reporting that US stock funds, once the darling of investors, aren’t drawing dollars like they used to.

Why not? One theory is that investors were burned when the S&P 500 lost 45% from 2000-02 and are stashing their money elsewhere. Another is that investors remember the mutual fund trading scandal of 2003. Still another theory says that consumers just have less to invest. Real income is down and consumer spending is up.

Which is it? We don’t know. Probably all three.

Many investors snub actively managed mutual funds [USAToday]
(Photo:FastFords)

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