Investors add $23.7 billion to stock funds in April

NEW YORK — Investors continued to add to their investments in stock mutual funds in April, as inflows reached $23.27 billion, according to a monthly report from the fund industry’s main trade group.

The inflow marked the 13th consecutive month of positive net flows for stock funds. The March inflow was just under $16 billion, according to the Investment Company Institute’s report.

Meanwhile, bond funds had an outflow of $7.78 billion, similar to their $7.81 billion outflow in March.

Money-market funds had an outflow of $46.2 billion during April, but it appears a weaker equity market in May, and higher interest rates looming in the future, may turn that trend around.

While the official May numbers won’t be released until the end of June, fund firms say there has been a notable increase in flows into money funds.

T. Rowe Price spokesman Brian Lewbart said his firm experienced “a very large pickup” in positive flows into money funds in May.

“That to me is the most significant thing I’m seeing,” in terms of fund flows, he said.

Lewbart suggested that uncertainty over Iraq, high oil prices and higher interest rates may be driving some investors toward the safety offered by money funds.

While flows into equity funds have slowed in May, they still remain “strongly positive,” he said.