The nation's mutual fund assets fell 1.3 percent in October 2009, dropping $144.1 billion to settle at $10.688 trillion, the Investment Company Institute reported Tuesday.

Of the ICI's six categories of mutual funds, stock funds fared worst, losing 2.7 percent of assets. The S&P 500 fell 2.0 percent in the month. Taxable bond funds were the only type to see an increase in assets, rising 3.3 percent. Hybrid (i.e. asset allocation, like target date) funds assets fell 0.4 percent, and municipal bond fund assets fell 1.1 percent. Taxable money market fund assets fell 1.9 percent in October, while tax-free money market fund assets fell 1.8 percent.

Long-term funds combined for a net inflow of $40.88 billion in October, thanks to bond funds bringing in $45.02 billion in that period. Stock funds saw net outflows of $7.08 billion, and hybrid funds netted $2.94 billion.

Money market funds continued their slide in flows, suffering net outflows of $71.80 billion in October (an improvement over the $126.91 billion taken out in September). 

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