Fund Investors Return During Rally, Newsletter Says

NEW YORK (Dow Jones)--U.S. stock funds tracked by Mutual Fund Trim Tabs showed their biggest net inflows in two weeks during the two days ending Monday, Sept. 29. They took in a net $1.18 billion, compared to $752 million a week earlier. During the midweek period in between investors had pulled out more than they put in, creating net outflows of $140 million. Trim Tabs attributes some of the action to end-of-quarter switching, but at a glance it looks like the same sort of performance-chasing that investors have long engaged in. The market, which had fallen during the previous midweek period, rose Friday and Monday by all measures. The Dow Jones Industrial Average gained 1.8% and the Standard & Poor's 500 index 1.6%. The Nasdaq composite and the small-cap Russell 2000 rose less - 1% and 0.8%, respectively - but the former closed in on a record and the latter actually set one. The net asset value of U.S. stock funds rose 1.2%, according to Trim Tabs. Assets of the 432 domestic stock funds tracked by the newsletter rose to $773.06 billion as of Sept. 29.