Debt Ceiling Concerns Prompt Investors to Flee Mutual Funds

Investors nervous about the prospect of a default by the U.S. government pulled money out of all forms of mutual funds, from money-market funds to those that invest in stocks.

U.S. money-market funds experienced $103 billion in redemptions the week ended Aug. 2, the most in one week since the bankruptcy of Lehman Brothers Holdings Inc. in September 2008, according to iMoneyNet, a fund research firm in Westborough, Massachusetts.