- +1-315-215-1633
- sales@thebrainyinsights.com
The global mutual fund assets market was valued at USD 70 billion in 2023 and grew at a CAGR of 11% from 2024 to 2033. The market is expected to reach USD 198.75 billion by 2033. The increasing awareness about financial security will drive the growth of the global mutual fund assets market.
Mutual fund assets mean the net cost of all the securities and other investment instruments held in a particular mutual fund. Holding companies bring together many investors into a large pool of capital with which to invest in a variety of securities depending on the type of fund formed. Common securities include stocks, bonds, money markets instruments or any other type of security as may be deemed appropriate by the fund managers. The acquired investments sum up to the total assets under management (AUM) and is major benchmark both for the investors and fund managers. The amount of money that is invested in mutual funds changes over time, and depends on the changes in the securities held in the mutual fund. If the stocks and bonds in the fund have a higher price, then the overall value of the mutual fund increases and when the prices of these securities reduce the value of mutual funds declines. This change is well illustrated in the net asset value (NAV), which is computed by the total value of fund’s assets held by shareholders and is divided by the total number of stock issues. Most mutual funds pool capital in equities, fixed income securities and money market instruments in order to reduce risk. Equity mutual funds mainly invest in equities with an objective of capital gains while bond mutual funds are meant for investing in bonds and are fixed income products. Hybrid funds invest in different items of various classes to achieve the right risk-reward profile. Another advantage of mutual fund assets is that it provides satisfaction or access to a professionally managed pool of funds for individual investors. This makes it easy for them to they are able to diversify and achieve exposure to other securities than what they would achieve if they were undertaking the exercise individually.
Get an overview of this study by requesting a free sample
Rapid economic growth – cycles of strong economic growth lead to higher corporate earnings, thereby, upgrading firms’ performances which attracts new investors to equity mutual funds as an instrument/opportunity for wealth generation. During growth periods, the stock prices rise, making the investors confident, to invest more in mutual funds, specifically in areas such as technology and consumer goods, which are valued in growth, by both institutional and individual investors alike. Besides, global economic growth also increases demand for international mutual funds since investors will look for markets that will give high returns. furthermore, mutual fund assets also allow sector and geographic diversification further reduce risk for investors which balances their profitability regardless of the performance of the specific sectors they have invested or geographical locations. Such a risk management strategy may interest both the risk averse and the professionals in search of growth, since mutual funds are well-suited to investing in high-risk environments. In general, the economic growth increases the demand for growth oriented mutual funds whereas; diversification and risk management also drive the demand of mutual funds among the investors contributing to the market’s growth.
Market volatility – Volatility hinders the investors and the demand for mutual fund assets. Market volatility caused by political instabilities, inflation, fluctuations in interest rates and deteriorating global economies lead to erosion of investor confidence in the market, which hampers the market’s growth. Due to fluctuating markets the confidence of investors being low they redeem their shares in mutual funds in order to retain their money. Many investors could transfer their portfolio to less risky investment lines such as fixed income securities or bonds, government securities or cash and this would significantly decrease the levels of fund inflow into growth-oriented or equity mutual funds. Their ‘flight to safety’ behavior means that during crises, or during economic fluctuations, the new mutual fund assets inflow is slowed down to a great extent. Further, short-term market uncertainties always make a mutual fund income negative, and thus reduces public confidence in the financial markets and less demand for mutual funds among the public and other large investors. Therefore, market volatility hampers the market’s growth.
Technological advancements enhancing accessibility for retail investors – The increased usage of technology, the possibility to invest with social networks and applications, the presence of online brokers have all contributed to make the investment process very easy so that anyone can easily invest in mutual funds. Today investors can open accounts, research on funds, monitor portfolio and even trade from smart phones or computers, and at times do not need to physically meet fund managers or bankers. Accessibility has been promoted further through product innovation such as computing and the emergence of robo-advisory services at cheaper prices. This democratization of financial advice serves to extend the scope of investing, for the youth or those with relatively low capital who may have been locked out of investing by the complexity or the costs of their traditional services. Secondly, due to the availability of real time market data performance of various funds, tools comparing funds, and information, most retail investors are now better placed. These innovations which include enhanced convenience, cost saving and transparency indicate that the mutual funds industry will continue to drive the market’s growth.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global mutual fund assets market, with a 36% market revenue share in 2023.
North America has a relatively strong and relatively well-developed financial system that comprises a variety of financial houses, sophisticated technology and adequate legal framework which provides for the disclosure and protection of investors. It is understood that this mature ecosystem builds confidence among investors and, in turn, investors invest a huge amount of money in mutual funds. There is diverse choice in the market of mutual funds in North America: equity funds, bond funds, money market funds, and many others, specialized types of mutual funds. Since stock investments come in diverse packages with diverse risk levels, it becomes easier for investors to choose what they want in their investment portfolios. North America has a large group of institutional investors such as pension funds and insurance companies, and endowments that also boost mutual fund assets. Another factor that has also driven mutual fund growth is that in North America, there is a very special culture of investing and planning for retirement. The public regard mutual funds as the ideal products for accumulating capital and saving for the future, which explains the steady stream of funds into these products.
North America Region Mutual Fund Assets Market Share in 2023 - 36%
www.thebrainyinsights.com
Check the geographical analysis of this market by requesting a free sample
The fund type segment is divided into equity funds, bond funds, money market funds, hybrid and others. The equity funds segment dominated the market, with a market share of around 40% in 2023. Equity funds are the largest in mutual fund assets since they promise the highest return than other types of mutual funds including bond or money market funds. These funds are majorly composed of stocks of listed companies mainly with their focus in getting capital gains in long position. Due to potentially higher returns, equity funds have been the most common type of mutual funds out there. Equity funds share the following characteristics (features), namely growth funds, value funds as well as sector funds. The availability of such different options makes them more desirable. In general, equity funds take up the biggest share of mutual fund assets based on their higher return possibility, flexibility in investment products, and inflation buffer. These factors make it easy to understand that they are the investors of choice for any firm looking to expansion.
The investor type segment is divided into institutional and individual. The institutional segment dominated the market, with a market share of around 58% in 2023. The key users of mutual fund assets are institutional investors including pension funds, insurance companies, endowments, and sovereign wealth funds. Their massive impact arises from the fact that they are sitting on huge piles of cash and require diverse, professional investment to fund long-term liabilities. Many institutional investors participate in mutual funds where the goals are generally to gain wide market representation alongside employing fund manager’s professional skills. The fact that they have large amounts of money to invest makes it possible for them to invest large proportions of their assets in mutual funds especially in equity and bond funds as these offer diversions and such investments can easily be liquidated. Large investors opt for mutual funds because these are managed and involve certain measures of risk factors inherent in it. It offers diversification plans with all kinds of classes of assets with professional attention given to portfolio alterations concerning the market volatility. In summary, institutional investors major in the control of mutual fund assets since they invest a huge amount of money, they have long term investment goals & they reinvest their money in professionally managed and diversified mutual funds.
The distribution channel segment is divided into banks, financial advisors/brokers and direct sellers. The financial advisors/brokers segment dominated the market, with a market share of around 42% in 2023. The legal entity of financial advisors and brokers has a specific experience required of them and the knowledge of financial markets. It speaks of advisory services that are unique to an investor’s objectives, their ability to bear risks, and the time they have to achieve financial objectives. This individual method allows clients to deal with potential problems of mutual funds on their own particular investment goals and the general financial perspective. Most advisors offer more than basic investment services that are specifically related to mutual funds. In light of holistic approach to managing an investor’s situation and needs such as retirement planning, taxes, and covering wills & inheritance. This broad perspective also improves the perceived value of mutual funds as a main investment tool, letting the demand increase. Moreover, many advisors have contracts with fund companies, through which they can supply their clients with specific products or for a specific price. Therefore, financial advisors and brokers predominate in the distribution channel of mutual fund assets based on their knowledge, individual approach to financial planning, and a range of offers and opportunities provided in terms of the investment products that generate investors’ confidence and demand for mutual funds.
Report Description:
| Attribute | Description |
|---|---|
| Market Size | Revenue (USD Billion) |
| Market size value in 2023 | USD 70 Billion |
| Market size value in 2033 | USD 198.75 Billion |
| CAGR (2024 to 2033) | 11% |
| Historical data | 2020-2022 |
| Base Year | 2023 |
| Forecast | 2024-2033 |
| Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level. |
| Segments | Fund Type, Investor Type and Distribution Channel |
As per The Brainy Insights, the size of the global mutual fund assets market was valued at USD 70 billion in 2023 to USD 198.75 billion by 2033.
Global mutual fund assets market is growing at a CAGR of 11% during the forecast period 2024-2033.
The market's growth will be influenced by rapid economic growth.
Market volatility could hamper the market growth.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global mutual fund assets market based on below mentioned segments:
Global Mutual Fund Assets Market by Fund Type:
Global Mutual Fund Assets Market by Investor Type:
Global Mutual Fund Assets Market by Distribution Channel:
Global Mutual Fund Assets Market by Region:
Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision.
Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.
The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.
Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:
The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.
The data procurement stage involves in data gathering and collecting through various data sources.
This stage involves in extensive research. These data sources includes:
Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:
Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.
Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.
The supply side for a domain specific market is analysed by:
The demand side for the market is estimated through:
In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.
Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:
Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:
Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.
This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.
Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.
The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:
Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.
Free Customization
Fortune 500 Clients
Free Yearly Update On Purchase Of Multi/Corporate License
Companies Served Till Date
