According to a survey group made up of executives active in the global exchange trade (ETF) sector conducted in 2021, the majority of the fund managers predicted moderate growth in demand for hedge fund ETF investment in the next two to three years. While ** percent of European survey respondents predicted demand being negligible by 2024, the Asia and Oceania experts were the most optimistic ones, with ** percent expecting demand to be significant.

According to Cognitive Market Research, the Global Online Alternative Investment market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
Equity crowdfunding currently holds the major share of the online alternative investment market.

Market Dynamics of Online Alternative Investment Market

Key Drivers for Online Alternative Investment Market

Increased Investor Demand for Diversification to Boost Market Growth 

The growing demand for diversification is a significant driver in the online alternative investments market. Investors are increasingly seeking to spread risk and enhance returns by allocating funds to non-traditional assets such as private equity, real estate, and venture capital. This shift is propelled by factors like market volatility, low interest rates, and the desire for assets with low correlation to traditional markets. Digital platforms have democratized access to these alternative investments, allowing retail investors to participate in opportunities previously reserved for institutional players. For instance, in March 2025, a report highlighted that Indian investors are diversifying into alternative assets like Small Finance Bank fixed deposits, corporate bonds, gold, real estate, and unlisted stocks to manage risk amid declining equity markets. (Source:https://economictimes.indiatimes.com/markets/stocks/news/alternative-investments-in-india-whats-driving-the-demand-beyond-stocks-and-mutual-funds/articleshow/119371027.cms?)

Key Restraint for the Online Alternative Investment Market

Regulatory Issues to Hamper Market Growth 

Regulatory issues present a significant restraint to the growth of the online alternative investment market. Stricter regulations across regions, such as tighter compliance requirements and transparency norms, are challenging for investment firms to navigate. While regulations like KYC (Know Your Customer), Anti-Money Laundering (AML), and other investor protection laws are necessary for market stability, they increase operational costs and complicate the investment process. In addition, regulatory uncertainties, such as evolving tax laws and securities regulations, can create a volatile investment environment, discouraging participation from both investors and fund managers, and slowing market expansion. For instance, in July 2023, a survey revealed that alternative fund managers across the UK, US, and Europe identified the current regulatory environment as their biggest challenge to successful fundraising, with reporting and liquidity also ranking highly. (Source:https://www.wealthprofessional.ca/news/industry-news/alternative-fund-managers-says-regulation-is-their-biggest-concern-right-now/377870?)

Key Trends for the Online Alternative Investment Market

Tokenization to Create Opportunities in the Market 

Tokenization is revolutionizing online alternative investments by leveraging blockchain technology to digitize traditional assets, making them more accessible and efficient for a broader range of investors. This innovation addresses long-standing barriers such as high minimum investment thresholds and complex management processes, thereby democratizing access to assets like real estate, private equity, and hedge funds. By enabling fractional ownership and enhancing liquidity, tokenization not only opens up new investment avenues for high-net-worth individuals b...

Snapshot img

Mutual Funds Market Size 2025-2029

The mutual funds market size is valued to increase USD 85.5 trillion, at a CAGR of 9.9% from 2024 to 2029. Market liquidity will drive the mutual funds market.

Major Market Trends & Insights

North America dominated the market and accounted for a 52% growth during the forecast period.
By Type - Stock funds segment was valued at USD 50.80 trillion in 2023
By Distribution Channel - Advice channel segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 151.38 trillion
Market Future Opportunities: USD 85.50 trillion
CAGR : 9.9%
North America: Largest market in 2023

Market Summary

The market represents a dynamic and ever-evolving financial landscape, characterized by continuous growth and innovation. With core technologies such as artificial intelligence and machine learning increasingly shaping investment strategies, mutual funds have become a preferred choice for individual and institutional investors alike. According to recent reports, mutual fund assets under management globally reached an impressive 61.8 trillion USD as of 2021, underscoring the market's substantial size and influence. However, the market is not without challenges. Transaction risks, regulatory compliance, and competition from alternative investment vehicles remain significant hurdles.
Despite these challenges, opportunities abound, particularly in developing nations where mutual fund adoption rates have been on the rise. For instance, mutual fund assets in Asia Pacific grew by 15.3% in 2020, outpacing the global average. As market liquidity continues to improve and regulatory frameworks evolve, the market is poised for further expansion and transformation.

What will be the Size of the Mutual Funds Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Mutual Funds Market Segmented and what are the key trends of market segmentation?

The mutual funds industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD trillion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Stock funds
  Bond funds
  Money market funds
  Hybrid funds


Distribution Channel

  Advice channel
  Retirement plan channel
  Institutional channel
  Direct channel
  Supermarket channel


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    Australia
    China
    India


  Rest of World (ROW)

By Type Insights

The stock funds segment is estimated to witness significant growth during the forecast period.

Mutual funds, specifically those investing in stocks, constitute a significant segment of the financial market. These funds exhibit diverse characteristics, catering to various investor preferences. For instance, growth funds prioritize stocks with high growth potential, while income funds focus on securities yielding regular dividends. Index funds mirror a specific market index, such as the S&P 500, and sector funds zero in on a particular industry sector. Share classes within mutual funds differ based on the share of investment. For example, large-cap funds allocate a minimum of 80% of their assets to large-cap companies, which represent the top 100 firms in terms of market capitalization.

Investors can opt for dividend reinvestment plans, enabling them to reinvest their dividends to maximize returns. Tax-efficient investing strategies, such as tax-loss harvesting, help minimize tax liabilities. Bond fund yields and currency exchange risk are essential considerations for investors in bond funds. Risk management strategies, including diversification and asset allocation models, play a crucial role in mitigating potential losses. Fund manager expertise and regulatory compliance frameworks are essential factors for investors. Hedge fund strategies, financial statement audits, actively managed funds, and passive investment strategies all contribute to the evolving mutual fund landscape. Expense ratios, asset allocation models, capital gains distributions, and portfolio rebalancing techniques are essential metrics for evaluating mutual fund performance.

Inflation-adjusted returns and equity fund volatility are crucial for long-term investment planning. Alternative investment funds and exchange-traded funds (ETFs) offer additional investment opportunities, with global diversification benefits and passive investment strategies gaining popularity. Nav calculation methods and passive investment strategies further broaden the scope of mutual fund investments. According to recent studies, stock mutual fund adoption stands at 35%, with expectations of a 21% increase in industry participation over the next five years. Meanwhil

According to a survey group made up of executives active in the global exchange trade (ETF) sector conducted in 2021, the majority of the fund managers predicted significant demand for financial advisors' ETF investment in the next two to three years. In each region, at least half of the respondents predicted that the demand would be significant. The U.S. and Canada were the most optimistic regions, with up to ** percent of the survey participants expecting demand to be significant by 2024.

China Minxin PMI: Mfg: Fund Turnover data was reported at 43.500 % in Jun 2016. This records a decrease from the previous number of 45.600 % for May 2016. China Minxin PMI: Mfg: Fund Turnover data is updated monthly, averaging 43.500 % from Dec 2014 (Median) to Jun 2016, with 19 observations. The data reached an all-time high of 50.500 % in Jan 2015 and a record low of 40.800 % in Nov 2015. China Minxin PMI: Mfg: Fund Turnover data remains active status in CEIC and is reported by China Academy of New Supply-side Economics. The data is categorized under China Premium Database’s Business and Economic Survey – Table CN.OP: Minxin Purchasing Managers' Index: Manufacturing (Discontinued).

"Offshore Investment: Booking Center Preferences 2017", report draws on our 2017 Global Wealth Managers Survey and Offshore Investment Analytics to analyze the performance of key booking centers over time. It has a particular focus on HNW individuals booking assets abroad. In particular it examines the propensity to invest offshore and booking center preferences for 20 key markets. Read More

"Wealth in Indonesia: HNW Investors 2017" analyzes the investment preferences and portfolio allocation of Indonesian HNW investors. The report is based on our proprietary Global Wealth Managers Survey. Read More

According to a 2020 survey, the share of actively managed exchange traded funds (ETFs) has declined from by around ** percentage points since 2017. The share of smart beta ETFs, on the other hand, increased by ***** percentage points in the same time frame. This trend is expected to continue over the next *** to three years.

Active ETFs are where an investment manager actively manages a portfolio of securities, while passive ETFs are structured so as to track a particular stock market index. (e.g. the S&P Index). Smart beta funds differ in that, while they track an index, they have an additional set of rules that guide which stocks from that index should be included in the portfolio at any given point in time.

View LSEG's Lipper Fund Research Database, providing independent fund content to benchmark fund performance, manage risk, and more.

According to a North American and European survey, delivery app enhancement and contactless processes are investment priorities in last mile delivery. During the survey, **** percent of North American respondents ranked contactless processes as an investment priority.

Global Wealth Management market size is expected to reach $2725.57 billion by 2029 at 6.7%, segmented as by type of asset class, equity, fixed income, alternative assets, other asset class

This report sizes the opportunity within the UK wealth market and analyzes the investment preferences, service requirements, and portfolio allocations of UK HNW investors. The report is based on our proprietary Global Wealth Managers Survey. Read More

CN: Minxin PMI: Non Mfg: Fixed Asset Investment data was reported at 47.400 % in Jun 2016. This records a decrease from the previous number of 48.600 % for May 2016. CN: Minxin PMI: Non Mfg: Fixed Asset Investment data is updated monthly, averaging 48.900 % from Dec 2014 (Median) to Jun 2016, with 19 observations. The data reached an all-time high of 53.000 % in Dec 2014 and a record low of 45.800 % in Feb 2016. CN: Minxin PMI: Non Mfg: Fixed Asset Investment data remains active status in CEIC and is reported by China Academy of New Supply-side Economics. The data is categorized under China Premium Database’s Business and Economic Survey – Table CN.OP: Minxin Purchasing Managers' Index: Non Manufacturing (Discontinued).

China Minxin PMI: Mfg: Fixed Asset Investment Expectation data was reported at 46.000 % in Jun 2016. This records a decrease from the previous number of 49.500 % for May 2016. China Minxin PMI: Mfg: Fixed Asset Investment Expectation data is updated monthly, averaging 45.950 % from Oct 2015 (Median) to Jun 2016, with 8 observations. The data reached an all-time high of 49.500 % in May 2016 and a record low of 43.800 % in Feb 2016. China Minxin PMI: Mfg: Fixed Asset Investment Expectation data remains active status in CEIC and is reported by China Academy of New Supply-side Economics. The data is categorized under China Premium Database’s Business and Economic Survey – Table CN.OP: Minxin Purchasing Managers' Index: Manufacturing (Discontinued).

In 2024, the real estate investment management market grew by *** trillion U.S. dollars. The figure shows the value of assets under management (AUM) held by more than *** of the largest real estate investment managers worldwide. According to the same source, Blackstone, Brookfield Asset Management, and Prologis were the largest real estate investment managers in 2024.

As of the first quarter of 2025, the New York City-based asset management company BlackRock had total assets under management (AUM) of around ***** trillion U.S. dollars. The total assets under management of BlackRock Inc. more than ******* between 2016 and 2025, reaching a value which makes them the world’s largest asset management company. Which assets do BlackRock manage? The company manages a wide range of assets: equity, fixed income, multi-assets, and alternatives, but their assets under management are also counted in cash management and advisory. As of 2023, the largest proportion of BlackRock’s AUM was equity, which accounted for more than **** of their total AUM that year. Which are their leading funds? BlackRock manages several different types of funds in several different asset classes: exchange traded funds (ETFs), mutual funds, and close-end funds. As of 2023, the ETF iShares Core S&P 500 was the company’s leading fund, which corresponds to the performance of common stocks in the S&P 500 Index.

China Minxin PMI: Mfg: Fixed Asset Investment data was reported at 47.400 % in Jun 2016. This records a decrease from the previous number of 49.500 % for May 2016. China Minxin PMI: Mfg: Fixed Asset Investment data is updated monthly, averaging 47.400 % from Sep 2015 (Median) to Jun 2016, with 10 observations. The data reached an all-time high of 49.500 % in May 2016 and a record low of 42.500 % in Feb 2016. China Minxin PMI: Mfg: Fixed Asset Investment data remains active status in CEIC and is reported by China Academy of New Supply-side Economics. The data is categorized under China Premium Database’s Business and Economic Survey – Table CN.OP: Minxin Purchasing Managers' Index: Manufacturing (Discontinued).