Mutual funds likely managed about $3 billion in net sales during February, according to preliminary estimates from the Investment Funds Institute of Canada.

IFIC reported that, based on a sample of preliminary data from some of its members, net sales of mutual funds for February are estimated to be between $2.75 billion and $3.25 billion. Long-term funds continue to generate positive net sales, while money market funds remain in net redemptions.

“With long-term fund sales close to $5 billion for February and above the $8 billion mark for the first two months of 2010 its clear that we are starting to see not just rebalancing activity but new money moving into mutual funds this RRSP season,” said Pat Dunwoody, vice president of member services and communications with IFIC.

Fidelity Investments Canada ULC led the overall sales charts in February, with $552 million worth of monthly net sales. It edged out Dynamic Mutual Funds, which had monthly net sales of $506 million. TD Asset Management was third at $472 million overall.

RBC was the leading long-term seller, with $906 million in monthly net sales. TD took second, with $838 million in long-term sales. However, both firms also saw significant net redemptions from their money market funds.

IFIC also estimates that net assets of the mutual fund industry for February will be between $593.6 billion and $598.6 billion, up approximately 1.97% from last month’s total. “Asset growth has also been very strong with assets under management increasing by $119 billion or 25% since last year’s low,” Dunwoody said.

IE