Mutual Fund Assets Market Size - By Investment Strategy (Equity Strategy, Fixed Income Strategy, Multi Asset/Balanced Strategy, Sustainable Strategy, Money Market Strategy, Others), Distribution Channel, Type, Investor Type & Global Forecast, 2023 - 2032

Mutual Fund Assets Market Size - By Investment Strategy (Equity Strategy, Fixed Income Strategy, Multi Asset/Balanced Strategy, Sustainable Strategy, Money Market Strategy, Others), Distribution Channel, Type, Investor Type & Global Forecast, 2023 - 2032

Mutual Fund Assets Market Size

Mutual Fund Assets Market size was valued at USD 513.3 billion in 2022 and is estimated to register a CAGR of over 8.5% between 2023 and 2032. A significant growth driver for the market is the appeal of diversification. Mutual funds pool investments from multiple individuals, enabling them to invest in assets such as stocks, bonds, and commodities. This diversification helps in managing risks, reducing the impacts of poor performance in any single asset. Investors are attracted to mutual funds for this risk management aspect as it offers protection against market volatility and potential losses.

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Dividend reinvestment is boosting mutual fund assets market growth. In dividend reinvestment, the investors choose to reinvest dividends earned from their mutual fund holdings, thus compounding their investments over time. This accelerates asset growth, attracting both individual & institutional investors seeking long-term wealth accumulation. Dividend reinvestment enhances the appeal of mutual funds as a wealth-building tool, contributing to market expansion.

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High expense ratios and sales charges can impede the growth of the mutual fund assets market. Investors are increasingly cost-conscious, and high fees can erode returns over time. These charges reduce the appeal of mutual funds, especially when compared to lower-cost alternatives such as Exchange-traded Funds (ETFs). Such high fees deter new investments and may prompt the existing investors to seek more cost-effective options, hindering the overall market demand.

COVID-19 Impact

The COVID-19 pandemic had significant impacts on the mutual fund assets market. The volatility and uncertainty caused by the crisis led to fluctuations in fund performance and investor sentiments. The economic downturn affected various sectors and industries, influencing the composition & value of mutual fund portfolios. The post-pandemic period has seen a gradual recovery in the market. As economies reopened, investor confidence began to improve. This led to an influx of capital into mutual funds, driving market growth & performance.

Mutual Fund Assets Market Trends

The growth of Assets Under Management (AUM) is a prominent trend in the mutual fund assets industry. Several investors are entrusting their capital to mutual funds, contributing to the expansion of AUM. This trend indicates investor confidence in the fund industry's ability to deliver returns and manage risks. The increased AUM not only reflects market growth but also enables funds to achieve economies of scale, potentially leading to cost efficiencies and wider investment offerings.

Mutual Fund Assets Market Analysis

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The mutual fund assets market from equity strategy segment dominated around USD 124.1 billion revenue in 2022. The appeal of capital appreciation is accelerating the popularity of the equity strategy within the market. Investors are drawn to equity-focused mutual funds owing to the potential of increased investments over time as the underlying stocks grow in value. This potential for higher returns compared to other asset classes makes equity funds a favored choice among those seeking long-term wealth accumulation and financial growth.

Equity strategies facilitate portfolio diversification, mitigating vulnerability to individual company-related risks and augmenting the comprehensive risk-return framework. They yield revenue from dividends as numerous companies allocate profits to their shareholders.

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The open ended segment held over 82.2% of the mutual fund assets market share in 2022, due to the emergence of new open-ended technology funds. These funds cater to investors seeking exposure to the technology sector's growth potential. For instance, in August 2023, HDFC Mutual Fund introduced the HDFC Technology Fund, an open-ended equity scheme that directs investments in technology & technology-related enterprises.

The performance of the scheme will be evaluated against the S&P BSE Teck Index. Its core objective is to achieve long-term capital growth by primarily investing in equities and equity-related instruments of companies within the technology & technology-related sectors. This focus on a specific sector allows investors to align their portfolios with market trends, driving inflows and contributing to industry expansion.

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North America mutual fund assets market accounted for 40% of revenue share in 2022. The investment banks based in the U.S. are expanding the regional market’s geographical landscape by acquiring asset management companies to strengthen the fund management and the distribution platform across channels.

For instance, in August 2021, The Goldman Sachs Group, Inc. reached an agreement to purchase NN Investment Partners from NN Group N.V. for about USD 1,682.4 million. NN Investment Partners provides equity and fixed income products with strong Environmental, Social, and Governance (ESG) integration throughout its business. The skills of NN Investment Partners improved fund management and distribution system for both institutional and retail channels of The Goldman.

Mutual Fund Assets Market Share

The major companies operating in the mutual fund assets market are

• BlackRock Funds
• Vanguard Group
• JP Morgan
• Fidelity Investment
• State Street Global Advisors
• Charles Schwab
• BNY Melion

Mutual Fund Assets Industry News

• In August 2023, Motilal Oswal Mutual Fund acquired 37.2 million of the Jio Financial Multi Asset/Balanced Strategy Ltd. shares, which is the dissolved non-banking financial services unit of Reliance Group, for USD 7,928.5 million via open market transaction.
• In August 2023, The Nippon India Innovation Fund, an open-ended equity scheme, has been launched, by Nippon Life India Asset Management Limited, asset manager of the Nippon India Mutual Fund. The fund scheme will invest primarily in businesses that are leading innovations across industries such as fintech, chemicals & pharma, auto & auto ancillaries, internet-based companies, and MNCs.

This mutual fund assets market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032 for the following segments

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Market, By Investment Strategy

• Equity Strategy
• Fixed Income Strategy
• Multi Asset/Balanced Strategy
• Sustainable Strategy
• Money Market Strategy
• Others

Market, By Distribution Channel

• Direct Sales
• Financial Advisor
• Broker-dealer
• Banks
• Others

Market, By Type

• Open Ended
• Closed Ended

Market, By Investor Type

• Commercial
• Individual

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Australia
  • Japan
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the global mutual fund assets market?

The market size of mutual fund assets crossed USD 513.3 billion in 2022 and is set to witness 8.5% CAGR from 2023 to 2032, due to the increasing consumer interest in diversified mutual funds and dividend reinvestments worldwide.

Why is the demand for equity strategy mutual fund assets growing?

The equity strategy segment recorded USD 124.1 billion in 2022, on account of the growing appeal of capital appreciation.

What factors are influencing mutual fund assets industry growth in North America?

North America registered over 40% of the market share in 2022, owing to the rapid expansion of investment banks in the region.

Who are the key mutual fund assets market players?

BlackRock Funds, Vanguard Group, JP Morgan, Fidelity Investment, State Street Global Advisors, Charles Schwab, and BNY Melion are some of the major mutual fund assets companies worldwide.