Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Jun 08, 2020 5 min read

Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

Money; Getty Images

If the market drop in March scared you into pulling money out of the market, you’re not alone.

Investors yanked $326 billion out of mutual funds and exchange-traded funds in March – that’s more than triple the fund outflows seen in October 2008, the previous record, according to Morningstar. Fleeing to safety, they dumped $685 billion into money market funds, which are considered a low-risk way to invest in high-quality, short-term debt instruments and cash.

But what a difference a few months makes: While the Standard & Poor's 500 dropped 20% in the first quarter, the index had fully recouped its loses for the year as of Monday's market close. Prior volatility could always return, but long-term investors should stay the course rather than jumping in and out, experts say.