No-load funds continued to attract the bulk of new cash in 2005, according to data recently released by the Investment Company Institute, pulling in $154 billion of the total $192 billion in inflows to mutual funds last year. Mutual fund sales to investors in employer-sponsored 401(k) and other retirement plans account for a big chunk of these no-load fund sales, says the ICI. The mutual fund trade group says no-load inflows were probably also influenced by sales of funds of funds, which often invest in underlying no-load funds. Last year, funds of funds took in $79 billion in net new cash. Among load funds, Class A and C shares received all of the inflows, while B shares saw net outflows for the fifth consecutive year.

Net New Cash Flow to No-Load Funds (billions of dollars, 2000-2005)
2000 2001 2002 2003 2004 2005
All Long-term funds $229 $129 $121 $216 $210 $192
Load 70 46 20 51 48 20
A shares 32 32 20 39 60 68
B Shares 26 -1 -16 -18 -35 -65
C Shares 27 22 24 29 22 25
No-Load 109 70 102 123 126 154
Source: 2006 ICI Fact Book