Record $20.6 Bil Pulled From Stock Funds But after March purge, investors resumed net buying at big groups.(B)(INVESTMENT TRENDS)

Byline: Dan Moreau

Investors yanked a record $20.6 billion out of stock funds in March, the Investment Company Institute reported. But money apparentlymoved back into them in April.

The record outflow occurred as the stock market was groping for a bottom. Asstocks rallied strongly in April, investors appeared to resume normal buying at major fund groups. The Nasdaq composite was up almost 13% for the month through Friday. The S&P 500 index rose about 8%.

Charles Schwab reported "a major turnaround" in stock fund cash net flow. Through Friday, Schwab had inflow of $1.5 billion in April.

Nearly all of the inflow went to Schwab's stock funds. Just $5 million went to its bond funds. For the first three months of the year, bond fund inflow dominated action at Schwab. In March, stock fund outflow was $1.37 billion. Bond funds had inflow of $525 million.

Schwab's growth funds took in nearly $620 million. Another $210 million wentinto the group's aggressive-growth funds. Growth-and-income funds took in $160million. Index funds grabbed the rest.

Schwab spokesman Mo Shafroth said seasonal funding of individual retirement accounts was responsible for much of the bounce. A Fed interest-rate cut also helped.