BOSTON — The so-called “fiscal cliff” agreement apparently helped boost investor confidence: The flow of cash into stock mutual funds during the first week of 2013 was the largest in more than 11 years.
Mutual funds investing in U.S. stocks attracted $4 billion in net deposits during the weeklong period that ended Wednesday, and funds investing primarily in foreign stocks took in about $3.5 billion, according to preliminary data from Lipper, a unit of Thomson Reuters.
The $7.5 billion total into stock funds was the largest since the week ending May 2, 2001.
The surge of cash into stock funds during the latest weekly period was far larger, factoring in the $10.8 billion in net deposits to stock exchange-traded funds.
Investors deposited a net $34.2 billion into U.S. funds of all types, including mutual funds and ETFs investing in bonds, as well as money-market funds.
The Jan. 1 deal to limit tax increases and delay spending cuts encouraged some investors to put their money in the market, said Lipper analyst Tom Roseen.