Article: GROWTH OF MUTUAL FUNDS MAKES MARKET VOLATILE.(BUSINESS)

Byline: LESLIE WAYNE - New York Times

As millions of Americans pour money into mutual funds at a record rate -- nearly $1 billion a day -- concerns are growing that the funds are bringing new risk to the savings of many people and instability to the markets in which they invest.

A whole generation of savers, seeking alternatives to the 2 and 3 percent returns available at banks, is now being transformed into investors.

Since the start of the current bull stock market, at the end of 1990, more than $450 billion has poured into mutual funds -- which include stock, bond and money market funds -- bringing their total assets to nearly $1.8 ...

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