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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS BET ON SMALL STOCKS

 /ADVANCE/ NEW YORK, Jan. 31 /PRNewswire/ -- Individual investors are putting billions of dollars into the shares of fast-growing small companies, which have risen a spectacular 23 percent since early October, according to data gathered for Money magazine's Small Investor Index.
 Although these stocks stumbled last week, falling 1.8 percent in two days, analysts believe the setback will prove to be temporary. "The group is still undervalued, so as long as the next sustained move in the economy is up, we have the making of a good small-stock rally," says Peter Schliemann, manager of the Babson Enterprise Fund.
 Over the past four months, the typical individual investor has earned $619 from small-company shares. That amounted to almost a third of the average investor's $2,099 gain for the period, even though small stocks make up only 7.3 percent of his or her total portfolio.
 Since October, small investors have poured $8.3 billion into mutual funds that hold small-company shares, according to AMG Data Services in Arcata, Calif. Those funds were recently attracting $868 million a week of new money, compared with a weekly average of $500 million in early January.
 Major fund groups confirm that big inflows are continuing. For example, the $659 million Vanguard Explorer Fund attracted $26 million in the first four weeks of January, vs. $23 million in December. And T. Rowe Price's $316 million Small-Cap Value Fund had net sales of $44 million in January, topping December's $35 million.
 Last week, the typical individual investor's portfolio, as tracked by the Index, rose $127 to $45,259. Stocks gained $58, and bonds returned $54. Certificates of deposit and money-market funds contributed $10, while gold added $6.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 100.86 100.58 94.20 +0.28% +7.07%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 100.80 +0.76% +9.76%
 ASE/OTC 102.62 -0.87 +11.80
 Equity funds 101.22 +0.28 +7.06
 Bonds:
 Taxable bonds 101.73 +0.79 +10.41
 Municipals 100.98 +0.16 +9.99
 Bond funds 101.30 +0.58 +8.85
 Cash:
 CDs 100.28 +0.07 +4.07
 Money funds 100.20 +0.05 +3.10
 Other:
 Real estate 100.38 -0.20 -9.50
 Gold 100.15 +2.64 -16.94
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 23.05% 23.53% Bond funds 6.53% 5.23%
 ASE/OTC 7.28 7.43 CDs 14.56 17.33
 Equity funds 6.29 5.09 Money funds 24.67 22.87
 Taxable bonds 8.80 9.87 Real estate 0.81 0.78
 Municipals 7.53 7.31 Gold 0.48 0.55
 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- 2/1/93
 /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:Jan 29, 1993
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