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MONEY SMALL INVESTOR INDEX: INVESTORS TURN ON TO 6% UTILITIES

 MONEY SMALL INVESTOR INDEX: INVESTORS TURN ON TO 6% UTILITIES
 /ADVANCE/ NEW YORK, July 19 /PRNewswire/ -- With rates on bank certificates of deposit and money-market funds now below 4 percent, a growing number of small investors are shifting cash into electric utilities paying as much as 6 percent, according to data gathered for Money magazine's Small Investor Index.
 The flow of new money into utility stock mutual funds jumped 53 percent to $272 million in the first two weeks of July, compared with $178 million for the same period in June, according to AMG Data Services, a research firm in Arcata, Calif.
 For example, Franklin Utilities Fund, with assets of $1.8 billion and a 5.6 percent yield, attracted $30 million in the first six trading days of July, almost half as much as the fund gained during the entire month of June. Similarly, the $89 million Financial Strategic Utilities Fund, paying 4.6 percent, picked up $5.5 million in early July, compared with net outflows a month earlier.
 Many investment advisers say that utilities are an attractive choice, but they caution small investors to stay diversified. Because electric utility stocks and funds are riskier than CDs, "savers shouldn't move more than 20 percent of their cash into them," says Chuck Carlson, editor of Dow Theory Forecasts in Hammond, Ind.
 He points out that conservative utilities are also a great defensive addition to a stock portfolio. "You can shift as much as 20 percent of your stockholdings into utilities," says Carlson. "That's a smart move right now because the overall market is vulnerable to a decline of as much as 10 percent in the next six months."
 Last week, the Small Investor Index, which tracks the value of the average individual's portfolio, rose $233 to a record $45,415. Stocks gained $182, while bonds added $28. CDs and money funds contributed $12. Gold kicked in $11.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 103.64 103.11 94.74 +0.52% +9.40%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 104.87 +0.88% +11.79%
 ASE/OTC 103.02 +2.03 +15.98
 Equity funds 103.64 +1.13 +11.07
 Bonds:
 Taxable bonds 104.64 +0.35 +14.52
 Municipals 106.34 +0.09 +12.77
 Bond funds 104.78 +0.26 +13.46
 Cash:
 CDs 102.47 +0.08 +5.00
 MONEY FUNDS 102.00 +0.06 +4.15
 Other:
 Real estate 97.02 +0.07 -5.77
 Gold 98.27 +4.79 -11.28
 Dec. 27, 1991 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 22.29% 21.91% Bond funds 5.77% 4.62%
 ASE/OTC 7.04 6.92 CDs 15.52 18.91
 Equity funds 5.59 4.39 Money funds 23.99 22.31
 Taxable bonds 11.56 12.29 Real estate 0.78 0.78
 Municipals 6.93 7.29 Gold 0.54 0.60
 Sources: Bank Rate Monitor, IBC/Donoghue's Money Fund Report, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 7/20/92
 /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/ CO: ST: IN: SU: ECO


GK -- NY055 -- 0493 07/17/92 21:09 EDT
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Date:Jul 17, 1992
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