Printer Friendly

MONEY SMALL INVESTOR INDEX: SMALL INVESTORS PLAY IT SAFE

 /ADVANCE/ NEW YORK, May 9 /PRNewswire/ -- With more experts saying stocks are overpriced, small investors are pouring billions of dollars into the least risky category of mutual funds, so-called asset- allocation funds, according to data gathered for Money magazine's Small Investor Index.
 These funds divide their assets among stocks, bonds and money-market securities. The managers vary the mix according to their market forecasts; for example, they cut back on equities when they think stocks may be due for a decline, as they do now. Since the funds spread their risk among different investments, their shares fall less when any particular market drops. However, they are also likely to rise less when, for example, stocks take off.
 Over the past two months, asset-allocation funds have been swamped with $1.3 billion of fresh cash, vs. $900 million in the previous two months, according to AMG Data Services of Arcata, Calif.
 For example, the Fidelity Asset Manager Fund, with $5.2 billion in assets, has taken in a net $534 million since March 1. The fund, which has returned 6.6 percent to investors so far this year, is opening 16,000 new accounts a month -- four times the rate of Fidelity's second most popular fund, $25 billion Magellan.
 Many analysts who think stocks are currently too pricey favor asset- allocation funds. Says Sheldon Jacobs, editor of the No-Load Fund Investor newsletter in Hastings-on-Hudson, N.Y.: "Asset-allocation funds are a perfect alternative for people abandoning bank CDs and money funds, because they have been offering higher returns at half the risk of a stock fund."
 Last week, the Money Index, which tracks the typical small investor's holdings, rose $387, to a record $47,517. Stocks gained $290, while bonds returned $90. CDs and money funds contributed $9.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 102.76 101.92 94.80 +0.82% +8.40%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 102.65 +1.09% +9.69%
 ASE/OTC 100.46 +3.28 +15.82
 Equity funds 103.18 +1.68 +9.34
 Bonds:
 Taxable bonds 105.34 +0.42 +12.73
 Municipals 105.68 +1.47 +13.01
 Bond funds 105.15 +0.63 +11.19
 Cash:
 CDs 101.24 +0.07 +3.84
 Money funds 100.87 +0.05 +2.79
 Other:
 Real estate 102.55 +0.34 -1.37
 Gold 132.94 -1.20 +21.71
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 23.38% 22.42% Bond funds 6.88% 5.78%
 ASE/OTC 7.38 7.08 CDs 13.43 16.53
 Equity funds 7.05 5.60 Money funds 23.74 23.85
 Taxable bonds 9.47 10.05 Real estate 0.79 0.78
 Municipals 7.28 7.40 Gold 0.59 0.52
 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- 5/10/93
 /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/


CO: ST: IN: SU: ECO

GK -- NY055 -- 6021 05/07/93 14:25 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 7, 1993
Words:594
Previous Article:DUFF & PHELPS: THE CHESAPEAKE AND POTOMAC TELEPHONE COMPANY OF WEST VIRGINIA $50 MILLION 6.05 PERCENT DEBENTURES DUE 2003 RATED 'AA'
Next Article:MACANDREWS & FORBES COMPLETES TENDER OFFER FOR MARVEL SHARES
Topics:


Related Articles
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS CHASE RISKY JUNK BONDS
MONEY SMALL INVESTOR INDEX: INVESTORS TURN ON TO 6% UTILITIES
MONEY SMALL INVESTOR INDEX: INVESTORS RACK UP BEST PROFITS OF '92
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS TAKE BIGGER RISKS
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS BET ON SMALL STOCKS
MONEY SMALL INVESTOR INDEX: STOCK INVESTORS CUT BACK THEIR BUYING
/REPEATING FROM FRIDAY, JUNE 4/
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS CASH OUT OF JAPAN
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS PUT BILLIONS BACK INTO MUNIS
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS GAIN SINCE CLINTON'S ELECTION

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters