Flow of Funds

Economics: in referring to the national economy, the way funds are transferred from savings surplus units to savings deficit units through financial intermediaries. See also Financial Intermediary.

Municipal bonds: statement found in the bond resolutions of municipal revenue issues showing the priorities by which municipal revenue will be applied. Typically, the flow of funds in decreasing order of priority is operation and maintenance, bond debt service, expansion of the facility, and sinking fund for retirement of debt prior to maturity. The flow of funds statement varies in detail from issue to issue.

Mutual funds: movement of money into or out of mutual funds or between various fund sectors. Heavy inflows and outflows are viewed respectively as bullish or bearish indicators for the stock market in general or for stock prices of the underlying companies in different sectors.