The US Mutual Fund Industry market report segments the industry into By Fund Type (Equity, Bond, Hybrid, Money Market), By Investor Type (Households, Institutions), and By Distribution Channel (Employee Sponsored Retirement Plans, Direct (Fund Companies, Discount Brokers), Sales Force Channel (Investment Advisors, Full-Service Brokers, Banks etc.)). Get five years of historical data alongside five-year market forecasts.

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.

Graph and download economic data for Mutual Funds; Total Financial Assets, Market Value Levels (BOGZ1LM654090000Q) from Q4 1945 to Q4 2024 about mutual funds, assets, and USA.

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.

The North America Mutual Fund Market is segmented based on the Asset Class (Equity, Bond, Hybrid, Money Market), by Investor Type (Households, Institutional Investors), and by Geography (US, Mexico, Canada, Rest of North America) - Growth, Trends, and Forecast (2022-2027).

The North American mutual fund industry, a cornerstone of personal and institutional investment, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is fueled by several key factors. Increasing retail investor participation, driven by factors such as financial literacy initiatives and the accessibility of online brokerage platforms, contributes significantly to market growth. Furthermore, institutional investors, including pension funds and endowments, continue to allocate substantial capital to mutual funds for diversification and long-term growth. The industry's diversification across fund types—equity, bond, hybrid, and money market— caters to a broad spectrum of risk tolerances and investment objectives. Geographic distribution, while concentrated in the United States, shows potential for expansion in Canada and Mexico, reflecting the increasing economic activity and financial sophistication in these regions. The competitive landscape is dominated by major players such as Vanguard, Fidelity, and BlackRock, who leverage their scale, brand recognition, and technological innovation to attract and retain clients. However, niche players and innovative fintech companies are also emerging, challenging the established order and potentially disrupting the market through specialized offerings and enhanced digital user experiences. Regulatory changes and evolving investor preferences, particularly concerning ESG (environmental, social, and governance) investing, are also shaping the industry's trajectory. The continued growth of the North American mutual fund industry is contingent upon several factors. Maintaining investor confidence amid market volatility is paramount. The industry's ability to adapt to technological advancements, including the integration of artificial intelligence and robo-advisors, will significantly influence its competitive edge. Furthermore, ongoing regulatory scrutiny and the need to transparently address concerns about fees and performance will play a crucial role in shaping investor perception and driving future growth. The industry's response to evolving investor demands, such as the increasing demand for ESG-focused funds and personalized investment solutions, will also determine its overall success in the long term. The continued expansion into new markets within North America, particularly by leveraging digital channels to reach a wider investor base, presents a significant opportunity for future growth. Recent developments include: In 2021, Fidelity Investements along with Visa backed Jumo, an emerging fintech startup which offers savings and credit products to entrepreneurs in emerging markets, as well as financial services infrastructure to partners such as eMoney operators, mobile fintech platforms and banks. it raised atotal of USD 120 million., In Dec 2021, T. Rowe Price Group, Inc. announced its acquisition of Oak Hill Advisors, L.P. (OHA), a leading alternative credit manager. The acquisition accelerates T. Rowe Price's expansion into alternative credit markets, complementing its existing global platform and ongoing strategic investments in its core investments and distribution capabilities.. Notable trends are: Market Securities Held By Mutual Funds in United States.

Graph and download economic data for Households and Nonprofit Organizations; Mutual Fund Shares, Equity Funds; Asset, Level (BOGZ1FL153064245A) from 1945 to 2024 about mutual funds, nonprofit organizations, equity, assets, households, and USA.

Domestic equity funds constituted 46 percent of the mutual fund and ETF assets in the United States in 2023, by far and away the most common asset class for U.S. investment funds. Following this was bond funds, then money market and world equity funds. Hybrid and other funds only comprised five percent of U.S. investment funds at this time.

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.

Graph and download economic data for Mutual Funds; Total Financial Assets in Domestic Equity Funds, Transactions (BOGZ1FU654091603A) from 1991 to 2024 about mutual funds, equity, transactions, domestic, assets, and USA.

Market Overview:

The global mutual fund assets market size reached USD 76.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 180.1 Billion by 2033, exhibiting a growth rate (CAGR) of 10% during 2025-2033. The market is driven by technological advancements, demographic shifts, increasing disposable incomes in emerging economies, and a growing emphasis on diversified and sustainable investment strategies.

Mutual Fund Assets Market Trends/Drivers:

• Diversified Investment Portfolios: The global mutual fund assets market is growing on account of the increased investor preference for diversified portfolios. Mutual funds offer an accessible way to spread risk across various asset classes, appealing to both novice and experienced investors.
• Technological Advancements: Digital platforms and fintech innovations have democratized access to mutual funds. The integration of artificial intelligence (AI) and machine learning in investment strategies is enhancing personalization and optimizing portfolio management, attracting a tech-savvy investor base.
• Evolving Regulatory Landscape: Regulatory changes globally are aiming to increase transparency and investor protection. Stricter disclosure requirements and the enforcement of fiduciary responsibilities are building investor confidence and stimulating market growth.
• Shifting Demographic Profiles: An aging population in developed countries and rising disposable incomes in emerging markets are key drivers. Mutual funds cater to the varying needs of these demographics, from retirement planning to entry-level investment options.
• Sustainable Investing Trends: There is a noticeable shift toward environmental, social, and governance (ESG) themed mutual funds. This trend reflects a growing awareness of sustainability issues and their long-term impact on investment returns.
• Market Breakup by Investor Type: Institutional investors, with their large capital and long-term investment strategies, significantly influence the mutual fund assets market. Their substantial investments and strategic decision-making shape market dynamics.
• Regional Markets: North America leads in market share due to its advanced financial infrastructure and investment culture. Europe and Asia Pacific also show strong market presence, each with unique growth drivers and challenges.
• Distribution Channels: Financial advisors and brokers are the largest distribution channel, offering personalized investment advice. Banks and direct sellers, including online platforms, also play significant roles, catering to different investor preferences and behaviors.
• Market Potential and Challenges: The mutual fund assets market is supported by its adaptability to investor needs and market conditions. However, it faces challenges like market volatility, geopolitical uncertainties, and evolving regulatory environments.

Mutual Fund Assets Market Trends/Drivers:

Rising interest in diversified investment portfolios

One primary driver of the industry is the increasing inclination toward diversified investment portfolios. With the growing awareness of the risks associated with investing in a single asset class, individual and institutional investors are progressively seeking mutual funds as a means to diversify their investments. Mutual funds offer a blend of stocks, bonds, and other securities, thereby spreading the risk across various financial instruments and markets. This diversification helps mitigate the impact of volatility in any one sector or region and provides exposure to a broader range of growth opportunities. Additionally, mutual funds are managed by professional fund managers, who bring expertise in market analysis and portfolio strategy, further appealing to investors who may lack the time or expertise to manage their investments. This trend is particularly noticeable among new investors and those in emerging markets, where mutual funds are seen as a gateway to more sophisticated investment strategies.

Advancements in fintech

Another key driver is the technological advancements in the financial sector, particularly the emergence of fintech and robo-advisors. These innovations have significantly democratized access to mutual fund investments, making them more accessible to a broader audience. Online platforms and mobile applications have simplified the process of investing in mutual funds, offering user-friendly interfaces, easy account management, and lower entry barriers in terms of minimum investment requirements. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) in investment management has enabled more personalized and optimized investment strategies, enhancing the appeal of mutual funds. These technological advancements have streamlined the investment process as well as provided educational resources, thereby attracting a tech-savvy generation of investors and those new to financial markets.

Evolving regulatory landscape

The evolving regulatory landscape plays a crucial role in shaping the industry. Regulatory bodies worldwide have been focusing on increasing transparency, improving investor protection, and ensuring the stability of financial markets. These efforts include the implementation of stringent disclosure requirements, the promotion of fair valuation practices, and the enforcement of fiduciary responsibilities of fund managers. Such regulations aim to build investor confidence by ensuring that mutual funds operate in a fair, transparent, and accountable manner. Moreover, some regions have introduced tax incentives for mutual fund investments, further stimulating market growth.

Mutual Fund Assets Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on fund type, investor type, and distribution channel.

Breakup by Fund Type:

• Equity Funds
• Bond Funds
• Money Market Funds
• Hybrid and Other Funds
  

Equity funds account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the fund type. This includes equity funds, bond funds, money market funds, and hybrid and other funds. According to the report, equity funds represented the largest segment.

Equity funds represent the leading fund type segment primarily due to their potential for higher returns over the long term. Despite the associated risks and market volatility, equity funds attract a broad spectrum of investors, from individuals seeking growth to institutional investors looking to maximize returns. Equity funds have gained traction due to historical performance, where equities have outperformed other asset classes over long periods. Additionally, with the increasing accessibility of global markets, equity funds offer diverse international exposure, allowing investors to benefit from growth in various economies. The popularity of these funds is also driven by their adaptability to cater to various investment strategies, from aggressive growth to value-oriented approaches, making them a versatile choice for many investors.

Bond funds are focused on investing in bonds and other debt

Mutual Funds Sales Market Outlook

As of 2023, the global mutual funds sales market size stands at approximately $56 trillion, with expectations to surpass $80 trillion by 2032, driven by a compound annual growth rate (CAGR) of 4.1%. The primary growth factors include increased investor awareness, technological advancements in financial services, and the rise of the middle-income population, particularly in emerging markets. This remarkable growth trajectory underscores a robust demand for diverse investment vehicles that cater to varying risk appetites and financial goals.

One of the pivotal growth factors for the mutual funds sales market is the increasing financial literacy and awareness among individuals globally. As more people become knowledgeable about financial planning and investment strategies, mutual funds have emerged as an appealing option due to their diversified risk profiles and potential for higher returns compared to traditional savings accounts. Governments and financial institutions are also playing a significant role by promoting financial education initiatives, which are further driving the adoption of mutual funds among retail investors.

Technological advancements and digital transformation in the financial services sector are also critical growth drivers. The rise of fintech platforms has streamlined the process of buying and managing mutual fund investments, making it more accessible and convenient for investors. Online platforms and mobile applications provide real-time data, personalized investment advice, and easy transaction processes, thus attracting a broader audience. These technological innovations are particularly resonating with younger, tech-savvy investors who prefer managing their investments digitally.

Another significant factor contributing to the market's growth is the economic development in emerging markets, particularly in the Asia Pacific and Latin America regions. The growing middle-income population in these regions is increasingly looking for investment opportunities that offer better returns than traditional savings. With increasing disposable income, more individuals are willing to invest in mutual funds to achieve their financial goals, such as retirement planning, education, and wealth accumulation. This trend is further bolstered by the improving regulatory frameworks and the expansion of financial services in these regions.

Regionally, North America continues to dominate the mutual funds sales market, accounting for a significant share due to its mature financial markets and high investor participation rates. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period, driven by rapid economic development, increasing financial inclusion, and technological advancements in the financial services sector. Europe, Latin America, and the Middle East & Africa also present significant growth opportunities, albeit at a slower pace compared to the Asia Pacific.

Fund Type Analysis

The mutual funds sales market can be segmented by fund type into equity funds, bond funds, money market funds, hybrid funds, and others. Each of these fund types caters to different risk appetites and investment goals, providing investors with a range of options to choose from. Equity funds, which invest primarily in stocks, are popular among investors seeking higher returns over the long term, despite their higher risk. As of 2023, equity funds constitute a substantial portion of the market, driven by bullish stock markets and investor optimism.

Bond funds, which invest in government and corporate bonds, appeal to risk-averse investors seeking stable income. These funds are less volatile compared to equity funds and provide regular interest income, making them attractive during periods of economic uncertainty. The demand for bond funds is expected to remain steady, supported by an aging population that prefers lower-risk investments and the need for income-generating assets in a low-interest-rate environment.

Money market funds, known for their high liquidity and safety, invest in short-term, high-quality debt instruments. These funds are ideal for investors looking for a safe place to park their money temporarily or those who need quick access to their funds. The market for money market funds has seen significant growth due to the ongoing economic uncertainties and the tendency of investors to seek safe-haven assets.

Hybrid funds, which combine elements of both equity and bond funds, offer a balanced approa

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.

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: 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.

Graph and download economic data for Mutual Funds; Total U.S. Government Securities; Asset (Market Value), Transactions (BOGZ1FA653061003Q) from Q4 1946 to Q4 2024 about mutual funds, transactions, securities, assets, and USA.

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.

The total net assets of the different types of index mutual funds in the United States generally increased, albeit with some fluctuation, from 2000 to 2023. In 2023, the net assets of the S&P 500 index amounted to a value of approximately 1.7 trillion U.S. dollars. In that same year, the net assets of other domestic equity and world equity amounted to approximately 2.4 trillion and 709 billion U.S. dollars, respectively. The total net assets of hybrid and bond index funds amounted to a value of approximately one billion U.S. dollars in 2023.

Graph and download economic data for Rest of the World; U.S. Mutual Fund Shares; Asset, Market Value Levels (BOGZ1LM263064203Q) from Q4 1945 to Q4 2024 about mutual funds, market value, assets, and USA.

The total net assets of both actively-managed mutual funds and passively-managed index mutual funds in the United States generally increased, albeit with some fluctuation, from 2000 to 2023. In 2023, the total net assets of active funds amounted to a value of almost 13.75 trillion U.S. dollars. The total net assets of index funds amounted to a value of roughly 5.8 trillion U.S. dollars in 2023.