Net new sales of mutual funds for February are estimated to be between $4.7 billion to $5.3 billion, the Investment Funds Institute of Canada said today.

Last February, net sales, which exclude reinvested dividends, totalled $5.0 billion. Net sales for January 2005 were $660.7 million.

IFIC says that net assets of the industry at the end of February will be in the range of $514 to $519 billion, up approximately 3.3% from last month’s total of $500.4 billion.

“We are encouraged that Canadian investors continue to recognize the value mutual funds can contribute to a diversified portfolio,” said John Murray, IFIC’s vp, regulation and corporate affairs. “Over the next couple of months, we expect investors who were unsure of where to put their RRSP contributions initially, now consider mutual funds.”

Most firms reported positive net sales of long-term funds, with RBC Asset Management leading the pack at $1.164 billion. Not far behind were TD Asset Management at $779 million and Manulife Investments at $728 million.

AIC Ltd. continued to see sizeable redemptions in its long-term funds during the month, with net sales of ($376 million). Fidelity Investments and Altamira Investments also recorded negative net sales in long-term funds.

There was an exodus from money market funds during the month, with most firms reporting negative net sales. Both RBC and CIBC Asset Management saw net redemptions in money market funds exceed $100 million.