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Published: Jun 08, 2020 5 min read

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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.