In a media briefing held last week, a senior economist from the Investment Company Institute, the national association of the mutual fund industry, explained why the rate of redemption for mutual funds is not an appropriate indicator of redemption activity for the typical fund shareholder. The problem with using the redemption rate .
Most shareholders sell no shares from their funds . . .
Consistently, about three-quarters of the fund shareholders in each of these four surveys across the decade said that they had not pulled shares from any of their mutual funds during the past 12 months. I think the consistency of these results is really quite striking. Redemptions are a normal part of the mutual fund business . . . The typical mutual fund shareholder adheres to one of the principles of good investment . . .