why is fund flow important to know about 
many analysts and market watchers believe that fund flow provides a window on investor sentiment and behavior some investors use fund flow data to signal when to buy or sell on the other hand others use fund flow information to substantiate their investment outlooks before they take action can fund flow predict market behavior reliably not necessarily although in past years apparently it did a pretty good job morningstar has found that net outflows happen even when a market is strong if fund flow were an accurate indicator both flow and behavior would probably match more often than they do 3