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Flow of Funds

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Flow of funds
In the context of municipal bonds, refers to the statement displaying the priorities by which municipal revenue will be applied to the debt.

In the context of mutual funds, refers to the movement of money into or out of a mutual fund or between or among various fund sectors.

Flow of Funds Statement
1. In municipal bonds, a statement listing the priorities of how the bond's revenue will be used. Usually, the priorities are listed in the following order: the project for which a bond was issued, the debt service, and saving to repay the principal.

2. In mutual funds, a statement of money moving into and out of the funds.
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