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Fidelity's profit up 13% as outflows decline

Fidelity Investments has struggled to keep assets as investors move to lower-cost passively managed index funds and exchange-traded funds

Fidelity Investments, the Boston-based asset manager and discount brokerage, said the operating income of its financial services business rose 13% to $2.6 billion, though investors continued to pull money from the company's stock and bond mutual funds.

Investors pulled a net $7.8 billion from Fidelity's stock products in 2013, even as the rest of the industry saw substantial inflows into such funds. Last year, US stock mutual funds and exchange-traded funds overall garnered more than $172 billion from investors, according to research firm Lipper Inc. In 2012, Fidelity's stock products saw withdrawals of $32.4 billion.

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