Mutual fund sales continued to sizzle in August, but money market funds - which represent most of banks' fund assets - declined, according to the Investment Company Institute.
Investors dumped $45.9 billion into funds during the month through purchases and reinvested dividends, said the trade association for mutual funds.
Money Markets Down 0.7%
Overall, assets rose about 3% above the July 31 level. But the assets of money market funds dipped 0.7%, to $558.4 billion, from $562.6 billion at the end of July.
Money market funds make up 70% of bank fund assets, according to Lipper Analytical Services. Assets of these short-term funds were $581.2 billion at the end of August 1992.
Overall, fund assets reached $1.9 trillion on Aug. 31 - 23.7% more than a year earlier.
Sales of stock mutual funds totaled $19.4 billion in August, compared with $18 billion in July and $9.5 billion in August 1992.
Growth-and-income funds, with sales of $5.3 billion, led all fund categories.
August sales of bond and income mutual funds totaled $26.4 billion, compared with $25.6 billion in July and $20.3 billion in August 1992.
Total sales represent share purchases and reinvested dividends but exclude exchanges between funds. Redemptions of shares are not reflected.
New sales, which exclude reinvested dividends, were $43.7 billion in August, compared with $41.2 billion in July and $28 billion in August of last year.
For stock funds, new sales totaled $19.1 billion, compared with $17.5 billion in July and $9.3 billion in August 1992.
New sales of bond and income funds were $24.6 billion, compared with $23.7 billion in July and $18.7 billion in August 1992.
Shareholders redeemed $20 billion in August - up from $18.1 billion the previous month and $14.2 billion in August 1992.