In 2023, there were 7,222 mutual funds in the United States. This is a reasonable decline from the previous year, and reverses the upward trend of the preceding decade, most likely due to the economic effects of the global coronavirus (COVID-19) pandemic. What are mutual funds? Mutual funds are financial vehicles pulling investors’ money to buy a diversified portfolio of financial instruments. Depending on the investment fund strategy, defined in fund prospectus, mutual funds can invest money in different asset classes. These different fund types appeal differently to investors, depending on the economic climate. Some investment funds also take other factors into consideration. SRI (Socially Responsible Investment) funds, for example, only invest in companies engaging in socially- or environment-friendly activities. Mutual fund outlook Since 2000, over two in five U.S. households have owned mutual funds. Over the same period, the total net assets of these funds has more than doubled. This is likely because these funds provide an easy, relatively safe investment option that shows modest returns, which appeals to long-term investors such as those saving for retirement.

Since the year 2000 the number of unit investment trusts in the United States has fallen significantly, dropping by over 60 percent up until 2023. Conversely, the number of U.S.-registered exchange traded funds has increased dramatically over this time, rising from under 100 to nearly 3,304. However, the majority of regulated open end funds registered in the U.S. in 2023 were mutual funds, with 8,582.

Graph and download economic data for Mutual Funds; Total Financial Assets, Market Value Levels (BOGZ1LM654090000Q) from Q4 1945 to Q1 2025 about mutual funds, assets, and USA.

United States Mutual Funds: ICI: Number: US: Equity Funds data was reported at 4,643.000 Unit in Oct 2018. This records a decrease from the previous number of 4,673.000 Unit for Sep 2018. United States Mutual Funds: ICI: Number: US: Equity Funds data is updated monthly, averaging 4,592.000 Unit from Jan 1996 (Median) to Oct 2018, with 274 observations. The data reached an all-time high of 4,872.000 Unit in Mar 2009 and a record low of 2,165.000 Unit in Jan 1996. United States Mutual Funds: ICI: Number: US: Equity Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z029: Mutual Funds: Number of Funds.

The total global net assets of mutual funds registered in the United States amounted to approximately 25.5 trillion U.S. dollars in 2023, compared to around 5.53 trillion U.S. dollars in 1998. Mutual funds - additional information Mutual funds are investment funds in which the capital is pooled from a number of different investors and then used to buy securities such as stocks, bonds or money market instruments. Although investing in mutual funds, rather than direct investment in individual securities, still presents a certain degree of risk, it has become more and more common practice around the world. One of the biggest advantages of this type of investment is the fact that the fund assets are managed by professionals, who aim to eliminate some of the risk involved in investing in individual stocks and bonds through diversification of assets. As of 2022, there were almost 7,400 mutual funds domiciled in the United States. There are four main types of mutual funds, categorized by the nature of their principal investments, namely: stock or equity funds (whether domestic or international), bond or fixed income funds, money market funds and hybrid funds. In 2022, domestic equity funds were the most popular category in the United States, representing 46 percent of all mutual fund and ETF assets.

In 2023, 52 percent of the households in the United States owned shares in a mutual fund. This is a significant increase on the 5.7 percent recorded in 1980, but close to 46.3 percent found in 2013.Mutual fundsA mutual fund is a variety of collective investment vehicle, managed professionally that pools money from many investors in order to purchase securities. They play an important role in household finances in the United States of today, most notably in retirement planning. It is commonly applied only to the forms of collective investment that are regulated and are sold to the public at large. The majority of mutual funds are what is known as ‘open-ended’, meaning that shares can be bought or sold at anytime. There are a number of advantages associated with mutual funds as opposed to direct investment in individual securities. The nature of the fund as a collective investment vehicle provides increased diversification and ease of comparison to investors. The fact that they are managed professionally, and that the investment is pooled, enables participation in investments that would normally only be available to larger investors. Mutual funds are also stable in price as daily liquidity ensures minimum loss of value. Despite several advantages, as with every aspect of investment some disadvantages are to be taken into account. Fees are an inevitable part of a professionally managed fund, as is the inability to customize the investment. A common complains is also that the investor has less control over timing of the recognition of their gains.

Revenue for the Open-End Investment Funds industry has been increasing over the five years to 2024. Open-end investment funds revenue has been growing at a CAGR of 0.6% to $176.7 billion over the past five years, including an expected decline of 0.4% in 2024 alone. In the same year, profit is set to fall to 29.4%. Industry revenue has been increasing alongside overall asset growth, despite operators being forced to lower fees to meet shifting consumer preferences. The greatest shift in the industry has been an evolving investor preference for exchange-traded funds (ETFs). While mutual funds account for the majority of industry assets, growth in ETF assets has significantly outpaced that of mutual funds. Expenses that mutual fund investors incur have fallen from 0.5% of assets in 2018 to 0.4% in 2023, as industry operators have cut fees to attract new capital due to pressure from new funds (latest data available). Also, in 2020, the financial stimulus and lowered interest rates in response to the pandemic helped increase asset prices in the latter half of the current period. Open-end investment funds' revenue is expected to grow at a CAGR of 3.3% to $207.5 billion over the five years to 2029. The fears over inflation and a possible recession are expected to dominate the beginning of the outlook period. The Federal Reserve is expected to continue cutting interest rates as inflationary pressures ease. Investment companies' importance will continue to grow, with mutual funds and ETFs representing key channels for individual and institutional investors to access financial markets.

United States Mutual Funds: ICI: Number: US: Bonds Funds data was reported at 2,136.000 Unit in Sep 2018. This records an increase from the previous number of 2,132.000 Unit for Aug 2018. United States Mutual Funds: ICI: Number: US: Bonds Funds data is updated monthly, averaging 2,053.000 Unit from Jan 1996 (Median) to Sep 2018, with 273 observations. The data reached an all-time high of 2,280.000 Unit in Feb 2000 and a record low of 1,846.000 Unit in Sep 2009. United States Mutual Funds: ICI: Number: US: Bonds Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z029: Mutual Funds: Number of Funds.

United States Mutual Funds: ICI: Number: US: Hybrid Funds data was reported at 709.000 Unit in Oct 2018. This records a decrease from the previous number of 714.000 Unit for Sep 2018. United States Mutual Funds: ICI: Number: US: Hybrid Funds data is updated monthly, averaging 509.000 Unit from Jan 1996 (Median) to Oct 2018, with 274 observations. The data reached an all-time high of 732.000 Unit in Feb 2017 and a record low of 419.000 Unit in Jan 1996. United States Mutual Funds: ICI: Number: US: Hybrid Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z029: Mutual Funds: Number of Funds.

United States Mutual Funds: ICI: Number: US: Bonds Funds: Municipal data was reported at 557.000 Unit in Sep 2018. This stayed constant from the previous number of 557.000 Unit for Aug 2018. United States Mutual Funds: ICI: Number: US: Bonds Funds: Municipal data is updated monthly, averaging 678.000 Unit from Feb 1997 (Median) to Sep 2018, with 260 observations. The data reached an all-time high of 977.000 Unit in Apr 1997 and a record low of 554.000 Unit in Oct 2014. United States Mutual Funds: ICI: Number: US: Bonds Funds: Municipal data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z029: Mutual Funds: Number of Funds.

The number of both actively-managed mutual funds and passively-managed index mutual funds in the United States remained relatively consistent between 2000 and 2023. In 2023, there were a total of 6,431 actively-managed mutual funds in the U.S. - a decrease of 181 from the previous year. There were only 516 passively-managed index mutual funds in the U.S. in 2023.

United States Mutual Funds: ICI: Net Cash Flow: US: Money Market Funds data was reported at 18.085 USD bn in Oct 2018. This records an increase from the previous number of -6.609 USD bn for Sep 2018. United States Mutual Funds: ICI: Net Cash Flow: US: Money Market Funds data is updated monthly, averaging -1.408 USD bn from Jan 1998 (Median) to Oct 2018, with 250 observations. The data reached an all-time high of 160.423 USD bn in Jan 2008 and a record low of -155.787 USD bn in Mar 2010. United States Mutual Funds: ICI: Net Cash Flow: US: Money Market Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z028: Mutual Funds: Net Cash Flow.

Graph and download economic data for Money Market Funds; Total Financial Assets, Level (MMMFFAQ027S) from Q4 1945 to Q1 2025 about MMMF, IMA, financial, assets, and USA.

United States Mutual Funds: ICI: Number: US: Taxable Money Market Funds data was reported at 299.000 Unit in Sep 2018. This stayed constant from the previous number of 299.000 Unit for Aug 2018. United States Mutual Funds: ICI: Number: US: Taxable Money Market Funds data is updated monthly, averaging 567.000 Unit from Jan 1996 (Median) to Sep 2018, with 273 observations. The data reached an all-time high of 705.000 Unit in Sep 2000 and a record low of 298.000 Unit in May 2018. United States Mutual Funds: ICI: Number: US: Taxable Money Market Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z029: Mutual Funds: Number of Funds.

The statistic presents the share of market securities held by mutual funds in the United States in 2023, by security type. As of 2023, U.S. mutual funds held 19 percent of municipal securities in the United States.

United States Mutual Funds: ICI: Net Cash Flow: US: Equity Funds data was reported at -18.956 USD bn in Oct 2018. This records an increase from the previous number of -28.057 USD bn for Sep 2018. United States Mutual Funds: ICI: Net Cash Flow: US: Equity Funds data is updated monthly, averaging 5.464 USD bn from Jan 1996 (Median) to Oct 2018, with 274 observations. The data reached an all-time high of 53.682 USD bn in Feb 2000 and a record low of -72.444 USD bn in Oct 2008. United States Mutual Funds: ICI: Net Cash Flow: US: Equity Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z028: Mutual Funds: Net Cash Flow.

United States Mutual Funds: ICI: Number: US: Bonds Funds: Taxable data was reported at 1,579.000 Unit in Sep 2018. This records an increase from the previous number of 1,575.000 Unit for Aug 2018. United States Mutual Funds: ICI: Number: US: Bonds Funds: Taxable data is updated monthly, averaging 1,324.000 Unit from Feb 1997 (Median) to Sep 2018, with 260 observations. The data reached an all-time high of 1,613.000 Unit in Sep 2016 and a record low of 1,247.000 Unit in Sep 2009. United States Mutual Funds: ICI: Number: US: Bonds Funds: Taxable data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z029: Mutual Funds: Number of Funds.

United States Mutual Funds: ICI: Assets: US: Tax Free Money Market Funds data was reported at 131.300 USD bn in Sep 2018. This records an increase from the previous number of 130.800 USD bn for Aug 2018. United States Mutual Funds: ICI: Assets: US: Tax Free Money Market Funds data is updated monthly, averaging 265.500 USD bn from Jan 1996 (Median) to Sep 2018, with 273 observations. The data reached an all-time high of 505.800 USD bn in Aug 2008 and a record low of 127.200 USD bn in Sep 2017. United States Mutual Funds: ICI: Assets: US: Tax Free Money Market Funds data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s USA – Table US.Z027: Mutual Funds: Net Assets.

As of the end of June 2024, the fund flow of equity mutual funds in the United States rested at -38.74 billion U.S. dollars. That figure was higher than in the previous month, when fund flow levels rested at roughly -40.87 billion U.S. dollars. Fund flows of equity also had a higher performance from last year when fund flow levels were at -47.07 billion U.S. dollars.

United States Mutual Funds: ICI: Number: US: Total data was reported at 7,906.000 Unit in Sep 2018. This records a decrease from the previous number of 7,915.000 Unit for Aug 2018. United States Mutual Funds: ICI: Number: US: Total data is updated monthly, averaging 7,963.000 Unit from Jan 1996 (Median) to Sep 2018, with 273 observations. The data reached an all-time high of 8,353.000 Unit in Mar 2002 and a record low of 5,746.000 Unit in Jan 1996. United States Mutual Funds: ICI: Number: US: Total data remains active status in CEIC and is reported by Investment Company Institute. The data is categorized under Global Database’s United States – Table US.Z029: Mutual Funds: Number of Funds.