Little of the money that flowed into mutual funds over the past two years came from maturing certificates of deposit, according to a survey by the Investment Company Institute.
The Washington-based trade group, made up of mutual fund companies, found that 43% of first-time investors in stock and bond mutual funds paid for their investments from current income.
And while 38% of new investors tapped existing investments to buy mutual funds, only 5.3% used the proceeds from CDs, the institute found.
Among seasoned investors - those who were not making their first investment in stock or bond funds - 37% used current income to make their most recent long-term mutual fund investment, while 44% used proceeds from other investments. Those who used money from maturing CDs represented 5.7%.
The findings are based on a random telephone survey of U.S. households conducted by Phoenix-Hecht. Participants were asked about the sources of funds for stock and bond mutual funds they purchased between July 1991 and July 1993.