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SMALL INVESTORS SHIFT FROM BIOTECH TO BANKS

 SMALL INVESTORS SHIFT FROM BIOTECH TO BANKS
 /ADVANCE/ NEW YORK, May 24 /PRNewswire/ -- Aggressive investors have


been moving hundreds of millions of dollars from mutual funds that hold health-care and biotech stocks to funds invested in banks, savings and loans, and other financial services, according to data gathered for MONEY magazine's Small Investor Index.
 The reason for the switch: since Jan. 1, financial services funds have risen as much as 28 percent, while many health-care funds have fallen by around 20 percent.
 By mid-May, in fact, financial services funds were attracting the most fresh cash of all funds that invest in a single industry, according to AMG Data Services in Arcata, Calif., which tracks fund assets. At Fidelity Investments in Boston, for example, the Select Regional Bank Fund has picked up $145 million of new money since Jan. 1, bringing its assets to $190 million. Similarly, Fidelity's Select Savings and Loan Fund has brought in $73 million, raising its assets to $85 million. By contrast, investors have withdrawn a net $233 million from Fidelity's Select Biotechnology fund, shrinking its assets to $706 million.
 Despite the run-up of financial stocks, most bank analysts think it is still not too late to get into funds that hold such shares. "Even though bank stocks have rebounded sharply, they could gain another 20 percent this year," says analyst Frank Barkocy at Advest in New York City. He explains that profits have been improving because the rates banks pay on CDs and other deposits have been dropping faster than the rates they charge on loans. Barkocy expects that banks will continue to benefit from this spread in rates over the next year or so.
 Last week, the Small Investor Index, which tracks the average individual's holdings, gained $33 to $45,989. Stocks rose $10, while bonds gained $8. CDs and money funds contributed $14.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 102.25 102.18 93.17 +0.07% +9.74%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 103.15 -0.03% +13.47%
 ASE/OTC 103.54 +0.46 +18.28
 Equity funds 103.48 -0.06 +13.35
 Bonds:
 Taxable bonds 101.21 -0.03 +11.38
 ?Municipals 103.11 +0.33 +11.51
 Bond funds 101.80 -0.02 +11.68
 Short-term assets:
 CDs 101.78 +0.08 +5.28
 Cash 101.55 +0.07 +4.49
 Other:
 Real estate 98.24 -0.01 -5.30
 Gold 93.82 +0.22 -3.86
 Dec. 27, 1991 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 22.13% 21.91% Bond funds 5.38% 4.37%
 ASE/OTC 6.99 6.92 CDs 16.07 19.35
 Equity funds 5.19 4.27 Cash 23.37 21.65
 Taxable bonds 12.68 13.14 Real estate 0.76 0.76
 Municipals 6.91 7.08 Gold 0.52 0.54
 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- 5/25/92
 /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 -- NY043 -- 3391 05/22/92 14:54 EDT
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Date:May 22, 1992
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