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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS SWAMP SMALL-COMPANY FUNDS

 /ADVANCE/ NEW YORK, Feb. 14 /PRNewswire/ -- Individual investors have overwhelmed small-company mutual funds with so much new money since December that seven leading funds have closed their doors to incoming cash -- and four others are on the brink of doing so too -- according to data gathered for Money magazine's Small Investor Index.
 "An increasing number of funds are closing -- this is the most in five years," says analyst Claudia Mott, who follows small stocks at Prudential Securities. "The flow of money into small-company funds has been so strong that many managers can't invest it fast enough," she explains.
 Over the past three months, individual investors have poured nearly $400 million a week of new money into the 166 small company funds tracked by AMG Data Services in Arcata, Calif.
 The torrent of cash didn't slow until the first week of February, when small investors cut their new purchases of such funds to $72 million. That may turn out to have been wise. The last time a large number of funds slammed their cash tills shut -- in early March of last year -- it presaged an 11% decline in small stock prices that began later in the month and lasted until August.
 Indeed, many analysts forecast a pullback of 10% or more for small stocks sometime in the next two or three months. But they expect the shares to recover quickly and go on to outperform the big Dow industrial stocks over the next three years or so. "Just be sure when you buy small stocks that you're committed for the long haul," advises Mott.
 Last week, the average individual investor's portfolio, as tracked by the Index, fell $69 from a record high of $45,903 to $45,834. Stocks lost $121, while bonds returned $25. Certificates of deposit and money- market funds contributed $10.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 101.77 101.93 94.67 -0.16% +7.50%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 103.08 -0.34% +11.49%
 ASE/OTC 102.80 -1.83 +8.88
 Equity funds 102.64 -0.79 +7.08
 Bonds:
 Taxable bonds 101.97 +0.02 +10.80
 Municipals 102.46 +0.66 +11.82
 Bond funds 101.99 +0.03 +9.29
 Cash:
 CDs 100.42 +0.07 +4.04
 Money funds 100.30 +0.05 +3.05
 Other:
 Real estate 101.27 +0.11 -8.36
 Gold 109.29 +7.14 -10.54
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 23.03% 23.41% Bond funds 6.69% 5.37%
 ASE/OTC 7.27 7.39 CDs 14.46 17.09
 Equity funds 6.56 5.24 Money funds 24.33 23.06
 Taxable bonds 8.80 9.83 Real estate 0.82 0.77
 Municipals 7.53 7.28 Gold 0.51 0.56
 Sources: Bank Rate Monitor, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Money Fund Report, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 2/15/93
 /NOTE TO EDITORS: This material is also available in printable form from AP GraphicsNet and Access services for graphics and tables (under the file name MoneyIndex) and from PR Newswire for full text./
 /CONTACT: Jordan Goodman of MONEY, 212-522-3618, or Patti Straus of MONEY public relations, 212-522-2695/


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Date:Feb 12, 1993
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