News Flash- Investors Fail to React to Mutual Fund Investigation
September 22, 2003
Despite the investigation by New York State's attorney general and the Securities and Exchange Commission into questionable and possibly illegal trading policies at four fund companies, the investing public - at least so far - is turning a deaf ear. Investors' willingness to pour money into equity funds is evidently driven by performance; year-to-date, the average equity fund is up 25.6%. TrimTabs.com estimates that stock funds have continued to see net inflows every day since Spitzer announced his investigation on Sept. 3. Spokespeople for Fidelty and T. Rowe Price have both stated publicly that inflows have continued at a very strong pace.
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