Investors are moving substantial sums out of bond funds and into emerging markets, much to financial advisers' delight.

In a move typical of a recession, investors plowed money into bond funds for most of this year in search of relative safety. In his fund-flow report for November, David Falkof, a Morningstar fund analyst, said net inflows to bond funds soared to more than $40 billion in August, September and October. But by November investors appeared to be "easing up on the fixed-income" pedal, with inflows for taxable and municipal bond funds dropping to $33 billion.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.