Investors Bought Mutuals at Brisk Pace During April

Money poured into stock and bond mutual funds in April at a faster pace than at any time since spring 1987, as individuals continued to favor long-term investments over low-yield money market accounts.

* Net cash flow into stock funds was $3.3 billion in April, versus $2.6 billion in March and $2.6 billion in April, 1990, the Investment Company Institute reported Thursday.

* Net cash flow into bond funds was $7.2 billion, compared to $4.9 billion in March and $1.1 billion in April, 1990.

Net cash flow is total purchases of funds, less redemptions, plus net amount of exchanges into and out of the funds.

Investors particularly sought out growth-and-income stock funds in April, ICI figures show. Those funds tend to own more conservative blue-chip stocks. Gross purchases of growth-and-income funds soared to $3.7 billion from $2.6 billion in March.

Investors also favored municipal bond funds, as tax season apparently persuaded many individuals to shelter more income in tax-exempt yields.

A spot check of fund companies Thursday suggested that May stock fund purchases slowed somewhat from April’s torrid pace, as the stock market pulled back. But muni-bond fund purchases continued strong, as investors chased better yields. “Muni funds are the big story in May,” said a spokesman for the Massachusetts Financial Services funds in Boston.