Mutual Fund Assets Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global mutual fund assets market reached a value of nearly USD 72.68 Trillion in 2024. The industry is expected to grow at a CAGR of 10.90% during the forecast period of 2025-2034. Increasing investor awareness and education, spurred by the support of the government and e-platforms, is the drive for growth in the mutual funds market in terms of assets-attracting more retail and institutional investors seeking diversified portfolios invested professionally, thus aiding the market to attain a valuation of USD 204.52 Trillion by 2034.

Mutual Fund Assets Market Overview

Mutual funds have evolved as one component of financial systems globally for diverse needs of investments and progress in technologies. This form collects capital from several investors into large pools for a professionally managed portfolio that could attract such individuals as would desire more diversified assets, wealth-building over a longer term period, and more specifically risk adjusted returns.

Rising disposable incomes and the increasing appeal of retirement and pension schemes are driving mutual fund investment. Low interest rates offered by traditional savings accounts are sending investors to higher-yielding products like mutual funds. Furthermore, economic recovery post-pandemic has boosted investor sentiment, and they are showing active participation in equity, debt, and hybrid funds for better returns, thereby augmenting the growth of mutual fund assets market.

Asset management companies innovate by offering sector-specific funds and international investment schemes in order to attract a more diverse range of investors. Most organizations are incorporating AI-powered portfolio management and personalized advisory services, increasing customer engagement. The collaborations with fintech platforms make onboarding hassle-free, transaction processing effortless, and real-time tracking of the portfolio. It is a dynamic strategy in support of continuous market growth and fosters trust from customers toward mutual fund investment.

Mutual Fund Assets Market Growth

Sustainable and ESG (Environmental, Social, and Governance) investments are a major driver of the global mutual fund assets market. As investors increasingly seek ethical and responsible investment options, demand for ESG-focused mutual funds has surged. For example, the iShares MSCI World ESG Screened ETF focuses on companies with strong ESG performance, attracting investors who want to align their financial goals with sustainability values. This shift is contributing to the growth of the mutual fund market, particularly in developed regions.

There were challenges in this market such as low investor awareness, inadequate access to the markets through financial education, and unreasonably high fees within the mutual fund market. These were dealt with by the leading players in investor education campaigns and digital platforms, increased transparency, and reduced costs. Other avenues of reform were with regulatory bodies, such as the SEC and SEBI themselves, further into higher investor protection with a simplification of the structures of such funds, thus boosting the mutual fund assets demand. But development did not end there. Assets managers used technology such as robo-advisors-those low-cost, customised investment solutions that have made mutual funds more accessible, attractive, and affordable to a wider base of beneficiaries- but also in offering their products.

Key Trends and Developments

Passive investing, ESG funds, digital transformation, and global diversification are shaping mutual fund trends.

November 2024

Tata Mutual Fund is launching the Tata Innovation Fund as an open-ended equity scheme focused on innovation. This is a new NFO set for launches between November 11 and 25, focused on long-term capital appreciation through companies using R&D, AI, and digital technologies.

October 2024

WhiteOak Capital Mutual Fund has launched the New Fund Offer for WhiteOak Capital ESG Best-in-Class Strategy Fund. The open-ended equity scheme focuses on investments in companies with strong ESG practices. The NFO closed on October 25, 2024.

March 2024

DSP Mutual Fund launched DSP US Treasury Fund of Fund (DSP UST FoF), the first ever open-ended fund of funds scheme that invests in units of ETFs and/or Funds focused on US Treasury Bonds. The Fund will enable investors to take advantage of FED interest rate policies by investing into US Treasuries. Over 95% of the asset of the fund will be invested in money market, floating rate, short, medium and long duration funds.

March 2023

The Financial Conduct Authority (FCA) authorised the first Long Term Asset Fund (LTAF), a new open-ended fund designed for efficient long-term asset investment under a 2021 regulatory regime.

Growth of Passive Investing

Passive investing via index and exchange-traded funds (ETFs) is increasingly popular among investors in their quest for low-cost, transparent, and diversified portfolios. This is largely due to the rise of self-directed investing and growing awareness of the merits of market-tracking funds. For example, U.S. markets have witnessed huge inflows into S&P 500 index funds, largely on the back of consistent long-term returns and low management fees. Asset management companies are increasing passive fund offerings to cater to cost-conscious investors and capitalize on the shift toward passive investment strategies, thus augmenting the mutual fund assets demand growth.

ESG-Focused Investing

ESG funds are becoming mainstream as socially conscious investors are turning to sustainability and ethical governance. With global regulatory support and increased corporate ESG disclosures, demand for ESG-themed mutual funds has picked up. For instance, climate policies in European countries have led to a rise in ESG fund investments. Asset managers are launching ESG-focused funds and integrating sustainable investment criteria into broader portfolios in response to changing investor preferences toward responsible investing.

Digital Transformation in Fund Distribution

Digital platforms are transforming mutual fund distribution by allowing easy account management, automated advisory services, and real-time performance tracking. Robo-advisors and investment apps like Betterment and Wealthsimple simplify the process of choosing funds, attracting tech-savvy millennials. Asset management firms join hands with fintech platforms to reach a wider audience, thereby improving customer experience and investment accessibility, thereby boosting the mutual fund assets market revenue.

Globalization of Investment Options

Investors are increasingly looking for international diversification through global mutual funds. Cross-border investments help reduce country-specific risks while capitalizing on growth opportunities in emerging markets. For instance, U.S. investors are looking into Asian and European equity funds in the wake of global economic recovery. Asset managers offer region-specific and globally diversified funds that allow investors to take advantage of international market trends and reduce portfolio concentration risks.

Mutual Fund Assets Market Trends

Increasing awareness about the benefits of investing in mutual fund assets, including liquidity, customizability, and professional management, is a key trend propelling the mutual fund assets market growth. Mutual funds also offer diversification benefits to the investors, spreading out the risk among various investments rather than a single one.

Growing support and initiatives taken by various governments to educate the general population about the existence and benefits of investing in mutual funds in an unbiased manner are boosting the confidence of individuals in these assets, leading to market growth.

Rapid digitalisation in the mutual fund sector is facilitating easy access of investors to complex services and enabling reduction in costs and centralisation of investment and related processes, adding to the comfort of investors. The convenience offered by such features encourages more people to invest in mutual funds, supporting the mutual fund assets market development.

One new technology revolutionising the mutual fund assets market is artificial intelligence (AI), applied in data analysis, portfolio management, and personalised investment strategies. AI-based tools enable an understanding of large datasets by fund managers, optimise their investment decisions, and make recommendations that could suit their clients better, bolstering the mutual fund assets market dynamics and trends. For instance, BlackRock leverages Aladdin, which uses AI to bring the realm of data analysis together with risk management for improved investment strategies. Overall, it creates more efficient and precise management of portfolios. In this respect, the technology is streamlining operations, improving decision-making processes, and giving better experiences to customers.

Several trends are shaping the mutual fund assets market. The increasing online platforms and robo-advisors enable mutual fund providers to offer low-cost, customized investment opportunities, thus attracting more tech-savvy retail investors and widening market access. The rise in wealth and financial inclusion in emerging markets offers new investor bases, providing a new market opportunity for mutual fund managers to access populations that previously had not invested. Regulatory changes in regions like Europe and Asia provide more defined frameworks for mutual fund distribution, offering growth opportunities and market penetration across the diverse regions. All these trends together fuel the growth of the mutual fund assets market.

Mutual Fund Assets Market Restraints

• Limited investor knowledge can hinder mutual fund market participation, especially in emerging regions, thus hindering the mutual fund assets market growth.
• Management and transaction fees can reduce investor returns, making mutual funds less attractive compared to lower-cost alternatives.
• Economic uncertainty and market fluctuations can discourage investors from committing to long-term mutual fund investments.
• Complex regulatory environments and inconsistent regulations across regions can hinder market growth and fund distribution.

Mutual Fund Assets Industry Segmentation

“Mutual Fund Assets Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

On the basis of fund type, the market can be divided into the following:

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

On the basis of distribution channel, the market can be divided into the following:

• Banks
• Financial Advisors/Brokers
• Direct Sellers
• Others

On the basis of investor type, the market can be divided into the following:

• Institutional
• Individual

Based on region, the market can be segregated into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

By Fund Type Analysis

Equity funds are gaining pace throughout the world because of higher returns that investors are keen on, particularly among the emerging markets and in the high-tech sectors. There is still huge demand for bond funds by virtue of low risk and income generation, and this is especially so in low-interest-rate conditions. As per mutual fund assets market analysis, among risk-averse investors seeking safety and liquidity, money market funds are gaining greater popularity. Hybrid and other funds are gaining attention, being diversified funds that offer diversified equity and fixed-income exposure helping in managing the risks and achieving steady returns amidst turbulent times.

Market Analysis by Distribution Channel

Mutual fund assets are being acquired through various distribution channels, among which banks are offering mutual funds to a large customer base by virtue of their established trust and financial network. Moreover, mutual fund growth is further getting momentum owing to the demand for financial advisors and brokers that provide dedicated investment advice to clients in order to help them navigate through the various fund options. Popularly known as direct sellers, online platforms are also gaining rapid popularity through cost-effective and easy-to-use investment solutions created to attract the tech-savvy investor. Others include wealth management firms and insurance companies, which also continue to broaden their mutual fund offerings so as to serve the more diversified needs of investors.

Market Insights by Investor Type

Institutional investors remain main growth promoters within the global mutual fund assets market, encouraged by massive investments and demand for diversified, high-return strategies. This is mainly represented by pension funds, insurance companies, and sovereign wealth funds seeking long-term stable growth. As per mutual fund assets industry analysis, individual investors are increasingly joining, boosted by access ease, low investment thresholds, and greater digital platforms and robo-advisors. With this trend of ESG investing gaining popularity, there is an increasing interest among both institutional and individual investors all around the world.

Mutual Fund Assets Market Regional Insights

North America Mutual Fund Assets Market Opportunities

The North America mutual fund assets market offers significant opportunities, driven by increasing investor demand for diversified and sustainable investment options. With assets exceeding $30 trillion in 2023, the United States remains the largest market, with growing interest in ESG funds and alternative investments. Opportunities also lie in the rise of digital platforms and robo-advisors, making mutual funds more accessible to retail investors. Furthermore, the shift towards passive investing, including ETFs, presents growth prospects for fund managers in the region.

Europe Mutual Fund Assets Market Dynamics

The Europe mutual fund assets market is driven by several key factors. Regulatory support, including frameworks like MiFID II and SFDR, boosts investor confidence by ensuring transparency. Persistently low interest rates encourage investors to seek higher returns through mutual funds, particularly in equities and alternatives. Demographic shifts, especially an ageing population, increase demand for retirement-focused funds. Additionally, technological advancements, including digital platforms and robo-advisors, make investing more accessible to a wider range of retail investors, further fueling market growth.

Asia Pacific Mutual Fund Assets Market Trends

The Asia Pacific market for mutual fund assets is seeing rapid growth, driven by rising wealth, increasing financial literacy, and expanding retail investor bases. In 2022, mutual fund assets in the region reached over $20 trillion, with China and India as major contributors. The trend toward digitalization, including robo-advisory services, is also gaining traction. According to the Asia Pacific Investment Management Association (APIMA), ESG-focused funds saw a 25% increase in AUM in 2023, reflecting growing regional demand for sustainable investments.

Latin America Mutual Fund Assets Market Insights

The Latin America mutual fund assets industry is experiencing steady growth, driven by increasing investor awareness and the region's expanding middle class. In 2021, assets under management (AUM) in Latin American mutual funds reached over $400 billion, with Brazil accounting for the largest share. The rise of ESG investing and regulatory improvements, such as the integration of international standards, are further boosting the market. According to the Latin American Association of Investment Funds (ALFI), sustainable fund offerings in the region grew by 15% in 2022.

Middle East and Africa Mutual Fund Assets Market Drivers

The Middle East and Africa mutual fund assets market is driven by several key factors. A growing middle class, increased wealth, and a rising appetite for diversified investment opportunities are major drivers. According to a report by PwC, assets in Middle Eastern mutual funds grew by 8.4% in 2021, reflecting strong investor demand. Additionally, regulatory improvements, such as the introduction of regional frameworks like the Dubai Financial Market's new regulations, are also stimulating market growth and attracting both local and international investors.

Competitive Landscape

The mutual fund assets market players focus on the expansion of their products to effectively address changing investor preferences, such as sustainable and ESG-focused funds. They also make considerable investments in technology to deepen the customer experience through digital platforms, robo-advisory services, among others. Mutual fund assets companies also really focus on global diversification through regional and sector-specific funds, increase transparency, and bring cost efficiency through economies of scale to attract a larger number of retail and institutional investors.

BlackRock, Inc.

BlackRock, Inc., established in 1988 is one of the world's leading providers of risk management solutions and investment advisory services. They provide tools and technology to help individuals meet their needs, achieve their retirement goals, and build wealth.

BNP Paribas Asset Management Holding

BNP Paribas Asset Management Holding is known for offering financial planning, portfolio management, and investment advisory services for institutional investors, funds, and individuals. The company was founded in 2007 and is headquartered in Paris, France.

Capital Group

Capital Group offers a wide range of products focused on active management and investment services for high net worth individuals, among others. The company was established in 1931 and is headquartered in California, United States.

Other mutual fund assets market key players include Citigroup Inc., Goldman Sachs Asset Management L. P., JPMorgan Chase & Co., Morgan Stanley Fund Services, PIMCO (Allianz Asset Management of America LLC), and The Vanguard Group, Inc., among others.