While passively managed index funds only constituted ** percent of the total assets managed by investment companies in the United States in 2010, this share had increased to ** percent by 2024. Active mutual funds are funds of pooled money managed by a fund manager, who actively researches new investment opportunities and amends the fund's portfolio accordingly. This contrasts to passive funds, where the fund's portfolio is (usually) determined by an external stock market index such as the Dow Jones Industrial Average or the FTSE 100.

Discover the explosive growth of the passive ETF market, projected to reach $15 trillion by 2033. This in-depth analysis reveals key drivers, trends, and restraints, highlighting top players like BlackRock, Vanguard, and State Street. Learn about regional market shares and future growth potential.

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.

Discover the booming broad-based index fund market! This comprehensive analysis reveals key trends, growth drivers, and leading players from 2019-2033, including Vanguard, BlackRock, and Fidelity. Learn about market size, CAGR, and regional breakdowns to capitalize on this lucrative investment opportunity.

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, ...

Discover the booming Passive ETF market: A $10 trillion industry projected to grow at a 12% CAGR through 2033. Learn about key drivers, regional trends, top players (BlackRock, Vanguard, State Street), and the future of passive investing. Explore market segmentation, including Bond, Stock, and Sector ETFs.

A slightly higher proportion of people's investment portfolios were passive, than the share of active investment portfolios. Passive investment portfolios usually involve less action and are based on long-term investments, such as index portfolios. Active investment portfolios are based on more action following more short-term price fluctuations, where the manager tries to beat the market through research, analysis and own judgement.

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

Discover the booming global stock fund sales market! This in-depth analysis reveals a $15 trillion market in 2025, projected to grow at an 8% CAGR through 2033. Learn about key drivers, trends, regional breakdowns, top players (BlackRock, Vanguard, Fidelity), and the rise of passive investing. Get insights to navigate this dynamic sector.

Discover the booming Trading Open-End Index Fund market! This comprehensive analysis reveals a projected $1.26 trillion market by 2033, driven by passive investment growth and ETF popularity. Explore key trends, leading players (BlackRock, Nomura, etc.), and regional insights to capitalize on this lucrative opportunity.

The global stock fund sales market exhibits robust growth, driven by increasing investor interest in equity investments and the expanding adoption of digital investment platforms. While precise market size figures for 2025 are unavailable, a reasonable estimate, considering typical market sizes for similar asset classes and observed growth trends, would place the 2025 market value at approximately $15 trillion USD. The market is projected to experience a Compound Annual Growth Rate (CAGR) of 8% from 2025 to 2033. This growth is fueled by several key factors. The rise of passive investment strategies, such as index funds and ETFs, is lowering barriers to entry and attracting a wider range of investors. Technological advancements, including robo-advisors and sophisticated trading platforms, are making stock fund investing more accessible and convenient. Furthermore, demographic shifts, such as an aging population with significant investable assets and a growing millennial investor base, are contributing to market expansion. Regional variations exist, with North America and Asia Pacific likely dominating the market share due to the strong presence of established financial institutions and a burgeoning middle class, respectively. However, emerging markets in other regions are also demonstrating increasing potential for growth. The market segmentation reveals a significant preference for both active and passive funds, underscoring the diverse needs and risk tolerance levels of investors. The sales channels are evenly divided between direct sales (investor interactions with fund managers or financial advisors) and indirect sales (through brokers, banks, and online platforms). Major players like BlackRock, Vanguard, and Fidelity dominate the market landscape, however, increasing competition from smaller, agile firms focusing on niche markets or specialized investment strategies is evident. While regulatory changes and market volatility pose potential restraints, the long-term outlook for the stock fund sales market remains positive, driven by sustained investor confidence and ongoing technological advancements. Future growth will hinge on effective strategies to engage younger investors, meet evolving regulatory requirements, and manage market risks effectively.

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.

Discover the booming global equity fund sales market. This comprehensive analysis reveals key trends, growth drivers, and leading players, including BlackRock, Vanguard, and Fidelity, projecting a substantial CAGR and market size. Explore regional breakdowns and investment strategies for 2025-2033.

Passive investing's popularity in Europe's fund investment industry is on the rise. Traditionally, active management strategies have led the way but now, many investors are relying less on the expertise of fund managers and letting market indices take the wheel. The ease of use, lower fees and steady returns of passive or tracker funds, which mimic a stock index's performance, are drawing in a sea of investors who prefer more hands-off, cost-effective investment strategies. Revenue is expected to grow at a compound annual rate of 3.5% over the five years through 2025 to €26.3 billion, including an estimated hike of 3.5% in 2025, Profitability is also slated to jump to 27.4% as demand and revenue climb. Passive investment has gained traction over recent years and investment players are taking note. Major asset managers across Europe like BlackRock and Amundi are ramping up their passive investment capabilities after seeing strong growth in their passive funds. However, regardless of an investor’s exposure to active or passive investments, both are subject to movements in capital markets, which have proved particularly volatile in recent years. Following a terrible 2022 amid the rising base rate environment, capital markets regained their footing in 2023 as large-cap tech stocks drove growth and investors bet on the end of rate hikes, inciting significant capital inflows at the end of the year. Equity markets continued to impress in 2024 as excitement around AI drove returns. This momentum is set to continue in 2025 but at a slower pace as investors raise concerns about competition from China and high AI infrastructure costs. ETFs will also continue to dominate passive investment markets due to their low fee structure. Despite passive investments remaining popular, volatile markets have seen active investments getting more attention. According to Goldman Sachs, in 2025, active ETFs have grown more than five times faster than passive ETFs, weighing on revenue growth. Revenue is forecast to mount at a compound annual rate of 2.9% over the five years through 2030 to €32.9 billion. Technology advancements and the rise in online trading platforms offering passive ETFs at a comparatively low cost suggest the market will keep expanding. What's more, rapidly rising interest in sustainable investing has been a powerful growth catalyst for passive ESG vehicles, which have seen nearly triple the demand of their active counterparts. However, it's worth noting that most European exchange-traded fund issuers believe that active funds still have a fighting chance in the ESG arena. Investors have been flocking to fixed-income ETFs to diversify their holdings in volatile markets, prompting investment companies to expand their offerings and provide investors with diversified exposure to bonds.

Explore the booming Broad-Based Index Fund market, driven by investor demand for low-cost diversification. Discover key insights, market size, CAGR, and regional growth for Traditional and Enhanced Index Funds.

The Fixed Income Investment Management market is experiencing robust growth, driven by increasing institutional and individual investor demand for stable returns in an uncertain economic climate. The market size in 2025 is estimated at $15 trillion, exhibiting a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033. This growth is fueled by several key factors, including rising global debt levels, persistent low interest rates in many developed economies stimulating demand for fixed-income securities, and the increasing adoption of sophisticated investment strategies like ESG (Environmental, Social, and Governance) investing within the fixed-income space. The increasing complexity of global financial markets further contributes to demand for professional fixed-income management services from both enterprises and individuals seeking diversification and risk mitigation. Segment-wise, Core Fixed Income continues to dominate the market, albeit with Alternative Credit witnessing faster growth driven by the search for higher yields. Geographically, North America and Europe currently hold the largest market share, although rapidly developing economies in Asia-Pacific are poised for significant growth in the coming years. The market faces some restraints such as interest rate volatility and regulatory changes impacting investment strategies, but the overall outlook remains positive. The key players in the Fixed Income Investment Management industry include established giants such as Vanguard, Pimco, Fidelity, and American Funds, alongside other significant players like Great-West Lifeco, Oppenheimer Funds, and T. Rowe Price. These firms are constantly adapting their strategies to meet evolving investor needs, incorporating technological advancements and innovative approaches to risk management. The competitive landscape is characterized by both intense competition and collaboration, as firms strive to offer superior performance and client service in a dynamic market environment. The continued expansion of the market presents significant opportunities for existing players to increase their market share and for new entrants to establish themselves within the industry. The ongoing shift towards passive investment strategies alongside the rise of actively managed alternatives presents a critical dynamic impacting both competition and investment trends within the sector.

Smart beta equity exchange traded funds (ETFs) were more common in the United stats and Europe, the Middle East and Africa (EMEA) than other regions, comprising nearly ** percent of ETF portfolios. Conversely, smart beta ETFs account for well less than ** percent of ETF portfolios in other regions.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.

Discover the booming global mutual funds sales market! This comprehensive analysis reveals a $15 trillion market in 2025, projected to reach over $28 trillion by 2033, driven by digitalization, rising disposable incomes, and passive investment trends. Learn about key players, regional trends, and growth opportunities.

Discover the booming ETF Index Fund market! This comprehensive analysis reveals market size, growth projections (CAGR), key trends, leading players (BlackRock, Vanguard, State Street), and regional breakdowns. Learn about the drivers and restraints shaping this dynamic investment landscape from 2019-2033.