Recent market volatility has scared mutual fund investors out of stock funds and into more diversified investments - opening the door for you to profit from a rebound in the top money manager stocks.
Anxious mutual fund investors pulled a net $21.4 billion from U.S. stock mutual funds in August after the Dow Jones Industrial Average had two of its top-10 worst days ever on Aug. 4 and Aug. 8, according to industry consultant Strategic Insight.
These recent single-day plunges erased billions in retirement holdings' value - and fund investors are tired of the quick losses.
"You can't keep having bombs, so to speak, go off," Andrew Goldberg, a market strategist at JPMorgan Funds, told Bloomberg. "If the second you walk outside another one goes off, you're going to stay inside for longer, and that's what's going on."
Now mutual fund investors are looking for more globally diversified funds and a broader range of asset classes, meaning companies offering those will be able to cash in on the changing fund-investing environment.
Not only that, these companies' share prices have hit new lows, meaning now's the time to get the top money manager stocks at a steep discount.