Fund flows

Fund Flows

1. In municipal bonds, a statement indicating a list of priorities for which the municipality will use the funds raised by the bond. Generally speaking, the flow of funds priorities begin with maintenance of city functions, followed by operations, debt service, expansion of the city's facilities, and reserving cash prepay debt.

2. In mutual funds, the balance of money going into and coming out a mutual fund.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Fund flows.

Fund flows are the traffic of money into and out of mutual funds or between funds that invest in various sectors.

This flow of money is considered an indicator of the direction the markets are headed. For example, large inflows of money into mutual funds may be interpreted as a bullish indicator for the stock market or for a specific sector, while dramatic outflows may signify an impending downturn.

However, if investors chase past performance or follow the currently hot sectors in deciding where to invest, large inflows may in fact precede disappointing performance.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
For the week fund flows showed creations beating redemptions by a factor of 1.49 to 1, per data from ETF.com.
Because the street's conviction remains obscure, we took a look at the fund flows for an array of leveraged and inverse ETFs offered by Direxion to discover where investors are pooling money.
Outside of the Philippines, factors that triggered the reversal of foreign fund flows back to emerging markets including the Philippines also remain in play.
Inconclusive IMF talks have extended market uncertainty, but a lack of definitive bearish movement indicates money managers are paying due attention to eventual money inflows from different avenues, Saudi Arabia, China and International Monetary Fund (IMF).The timing of fund flows is crucial and holds the key to market direction where negative narrative on fund flow is being countered by positive narrative on eventuality of the same as well as economic benefit of current low oil price.
As manager of the largest funds in the country, it has seen global fund flows into equities since the start of the year reaching twice that of bonds.
The US economy is witnessing a pick-up in inward fund flows because of increased banking flows, corporate fund flows and trade volumes.
Global Banking News-November 7, 2017--OCBC partners ThetaRay to detect suspicious fund flows
While prior researchers have studied the relation of mutual fund flows with their underlying asset returns (e.g., see Warther, 1995; Edelen and Warner, 2001; Coval and Stafford, 2007; Ben-Rephael et al., 2011), relatively little is known about the relationship between ETF flows and the underlying assets.
Going by similar trends, and assuming the traction in fund flows happens gradually, our estimates for Saudi Arabia's fund flows in the initial phases (three to six months after inclusion) is around $6bn to $7bn.
Monthly Product Trends Edition reports that, bolstered by positive net flows moving into active mutual funds ($7.7 billion), total mutual fund flows ($35.6 billion) outpaced ETFs ($33.0 billion) for the first time since February 2016.
We find that sensitivity of fund flows and fund performance are both related to participants' right to choose their investments in defined contribution plans.

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