Actively managed funds beat the index
From The New York Times
Mutual fund investors who ignored index funds in hopes that their actively managed funds would eventually beat the Standard & Poor's 500 are getting their wish. The average United States diversified equity fund appears to be beating the index for the second consecutive quarter. But those who found comfort in the index are no longer so pleased. The Standard & Poor's index is down 7.3% since June 30 and with a return now up only 4.2% for the year, investors aren't all smiles. In reaction fund sales have slacked off considerably in the last two months as the broader market has drifted lower.

Where's the money
From The Wall Street Journal
Money is only trickling into mutual funds as many investors have cut back the sums of money they put into mutual funds and increased fund withdrawals, continuing the last months trend. In August, investors stuffed $9.21 billion in net new money into stock funds, down 26% from $12.4 billion in July, according to the Investment Company Institute. Bond funds suffered a net outflow of $987.8 million in August, compared with $560 million of net new money received in July. Mutual fund executives say the outflows are occurring because individuals are opting to invest in individual tech stocks rather than funds.
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