Loading up on No LoadsLoading up on No Loads
No-load funds continued to attract the bulk of new cash in 2005, according to data recently released by the Investment Company Institute
July 1, 2006
Kristen French
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.
| 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 | ||||||
