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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?

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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 Cognitive Market Research, the global index fund market size was USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% 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 4.2% 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 8.0% 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 5.4% 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 5.7% from 2024 to 2031.
The insurance fund held the highest index fund market revenue share in 2024.

Market Dynamics of Index Fund Market

Key Drivers for Index Fund Market

Increased Awareness and Education About Investing to Increase the Demand Globally

Increased awareness and education about investing have driven the growth of the index fund market. As people become more informed about financial principles, they realize the advantages of index funds, including low expenses, diversification, and transparency. Understanding the advantages of passive investing over operational management fosters confidence in index funds as dedicated vehicles for long-term wealth accumulation. This heightened attention drives greater participation in the market, shaping it into a key element of many investors' portfolios and contributing to its ongoing expansion.

Changes in Regulatory Policies, Such As Tax Laws Or Securities Regulations to Propel Market Growth

Changes in regulatory policies, like alterations in tax laws or securities regulations, can profoundly impact the index fund market. Shifts in tax codes may affect investors' after-tax returns, influencing their investment decisions. Similarly, changes in securities regulations can influence the structure and function of index funds, potentially limiting their attractiveness or compliance needs. Such changes can lead to changes in investor behavior, fund implementation, and market dynamics, highlighting the interconnectedness between regulatory conditions and the index fund market's strength and development trajectory?.

Restraint Factor for the Index Fund Market

Changes in Financial Regulations to Limit the Sales

Changes in financial regulations can significantly impact the index fund market. Stricter regulatory requirements may improve compliance expenses for fund managers, potentially directing investors to higher fees. Additionally, regulations that restrict certain types of investments or mandate more comprehensive reporting can decrease the flexibility and attractiveness of index funds. Conversely, regulations encouraging transparency and investor protection can increase confidence and participation in the market.

Impact of Covid-19 on the Index Fund Market

The COVID-19 pandemic significantly impacted the index fund market, initially causing volatility and sharp drops. However, it also revved a shift towards passive investing due to market anticipation and the search for stability. Investors flocked to index funds for their low expenses, diversification, and constant performance. The subsequent market recovery, fueled by monetary and fiscal stimulation, further expanded index fund assets. Overall, the pandemic highlighted the resilience of index funds and solidified their attraction as a core investment strategy during times of economic uncertainty. Introduction of the Index Fund Market

An index fund is a type of mutual fund or ETF designed to replicate the performance of a specific financial market index, delivering low costs, broad diversification, and passive investment management. Growing disposable incomes in developing regions significantly boost the index fund market. As individuals in these areas gain more financial stability, they seek investment opportunities to increase their wealth. Index funds, with their low expenses, ...

View yearly updates and historical trends for S&P 500 Annual Total Return. from United States. Source: Standard and Poor's. Track economic data with YChar…

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The fastest-growing investment fund managed by U.S. asset management company Charles Schwab was Schwab Fundamental International Small Equity Index Fund. In the 12 months up to August 19, 2025, the mutual fund generated an annual return of 25.04 percent. Schwab's fastest-growing exchange-traded fund (ETF) was the Schwab Crypto Thematic ETF, which grew at 63.86 percent.

Defense and Aerospace Portfolio(FSDAX) generated around **** annual return as of 15 August 2025, making it Fidelity Investments' fastest-growing portfolio. Fidelity's fastest-growing exchange-traded fund (ETF) was the Fidelity Crypto Industry and Digital Payments ETF, which grew at ******percent. An ETF is a basket of shares (or other financial assets) that generally tracks an underlying index. They are similar to mutual funds, with the fundamental difference that ETFs are listed on stock exchanges, with ETF shares being traded just like regular stock.

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Index Time Series for Vanguard International High Dividend Yield Index Fund ETF Shares. The frequency of the observation is daily. Moving average series are also typically included. The fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics. The index focuses on companies located in developed and emerging markets, excluding the United States, that are forecasted to have above-average dividend yields.

Index Time Series for Vanguard FTSE Emerging Markets Index Fund ETF Shares. The frequency of the observation is daily. Moving average series are also typically included. The index measures the investment return of stocks issued by companies located in emerging market countries. The fund employs an indexing investment approach designed to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. It invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the index in terms of key characteristics.

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Global Broad Based Index Fund market size 2025 was XX Million. Broad Based Index Fund Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Global Commodity Index Funds market size 2025 was XX Million. Commodity Index Funds Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

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The Asia-Pacific Exchange-Traded Fund (ETF) market, valued at $1.17 billion in 2025, is projected to experience robust growth, driven by increasing investor sophistication, rising demand for diversified investment strategies, and the region's burgeoning middle class. A Compound Annual Growth Rate (CAGR) of 6.59% from 2025 to 2033 indicates a significant expansion. Key drivers include the rising adoption of passive investment strategies, the growth of digital wealth management platforms, and favorable regulatory environments in several key markets within the region, particularly in rapidly developing economies such as India and Indonesia. The increasing popularity of thematic ETFs focusing on sectors like technology, sustainable energy, and healthcare is further fueling this growth. While regulatory uncertainty and market volatility can pose challenges, the overall outlook remains optimistic. Segments like Equity ETFs are expected to dominate the market share, followed by Fixed Income ETFs, given the regional preference for diversification and exposure to both growth and stability. Commodity and Currency ETFs are anticipated to witness moderate growth driven by increasing hedging needs and global market fluctuations. The relatively nascent Real Estate and Specialty ETF segments are expected to see significant growth potential due to increasing investor interest in alternative asset classes and focused investment themes. Major players like BlackRock's iShares, Nikko Asset Management, and Mirae Asset Global Investments, along with several significant regional players, are well-positioned to benefit from this expanding market, competing on the basis of product innovation, cost-effectiveness, and strong distribution networks. The increasing focus on ESG (Environmental, Social, and Governance) investing is also shaping the product landscape, attracting a growing segment of socially conscious investors. Recent developments include: May 2023: Nomura Investor Relations Co. Ltd ("Nomura IR") and Nomura Securities Co. Ltd ("Nomura Securities") partnered with QUICK Corp. to run a sponsored research company., December 2022: The new ETF-listed index fund, US Equity (Dow Average) Nikko Asset Management Co. Ltd, announced no currency hedge. It was launched on the Tokyo Stock Exchange on December 16.. Key drivers for this market are: Accessible Investment Platforms, Growing Culture of Financial Investment. Potential restraints include: Accessible Investment Platforms, Growing Culture of Financial Investment. Notable trends are: Equity ETFs Dominate the ETF Market.

The returns offered on investments made varied based on the time frame and security type. Money market funds and fixed-income funds had relatively stable return rates. Equity funds offered the highest rates of return over a ********* period, with the K-ICTK ICT Sector Index Fund offering a compound interest rate of **** percent.

Stock market return (%, year-on-year) in Sweden was reported at 29.59 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. Sweden - Stock market return (%, year-on-year) - actual values, historical data, forecasts and projections were sourced from the World Bank on October of 2025.

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As of August 2025, the Vanguard Information Technology Index Fund provided the highest one-year return rate. The Vanguard S&P 500 Growth Index Fund ranked second having a one-year return rate of 31.1 percent. As of August 2025, the Vanguard Total Stock Market Index Fund was the largest fund owned by Vanguard, with net assets under management worth approximately 1.91 trillion U.S. dollars. What is the difference between mutual funds and exchange traded funds? Both mutual funds and exchange traded funds (ETFs) originate from the concept of pooled fund investing, which bundles securities together to offer investors a more diversified portfolio. However, mutual funds and ETFs have some key differences. For instance, ETFs offer more flexible trading as they trade during the day like stocks, while mutual funds only allow transactions at the end of the day. Moreover, ETFs are mostly passively-managed and mirror a designated index. On the other hand, mutual funds are typically actively-managed, as it can be seen by comparing the number of actively and passively-managed mutual funds in the United States. Vanguard Founded by John C. Bogle in 1975, Vanguard is a U.S. asset management company that offers both mutual funds and ETFs. Headquartered in Malvern, Pennsylvania, Vanguard was the second largest provider of ETFs in the United States after BlackRock Financial Management, with assets under management worth 3.4 trillion U.S. dollars. Likewise, in 2025, Vanguard ranked among the largest providers of mutual funds worldwide. The total assets under management of Vanguard increased considerably since its foundation in 1975, and peaked at 10.1 trillion U.S. dollars in April 2025.