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The Mutual Funds Market size is estimated to grow by USD 84 trillion, at a CAGR of 10.43% between 2023 and 2028. Market expansion hinges on several factors, such as enhanced market liquidity, a growing proportion of financial savings within overall household savings, and the expanding investor base driven by heightened awareness. However, the market encounters challenges, including transaction risks, fluctuations in interest rates and principal amounts, and the presence of alternative investment options. These obstacles can impede the smooth functioning of the market and create uncertainties for investors. Mitigating transaction risks and providing stability in interest rate and principal amount fluctuations are critical for sustaining investor confidence and fostering market growth. Additionally, exploring innovative investment alternatives and enhancing investor education can help address the challenge posed by the availability of alternatives, thereby promoting market resilience and sustainability.
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The market share growth by the stock funds segment will be significant during the forecast period. Mutual Funds are a type of Investment Fund where many investors pool their funds to invest in various securities such as stocks, bonds, commodities, or sector-specific industries. The mutual fund industry has seen significant digital penetration, reaching retail investors in smart cities and small towns through Systematic Investment Plans (SIPs) and Demat accounts with CDSL, NSDL, and SIP accounts. Equity Funds, including growth funds, income funds, and sector funds, invest in stocks.
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The stock funds segment was valued at USD 44.30 trillion in 2018. Large-cap funds focus on top companies, while equity-oriented schemes follow an equity strategy. Hedge funds cater to institutional investors and corporates, providing alternative investment opportunities. Assets under Management (AUM) in the mutual fund industry are managed by fund houses, which offer various schemes like Money Market Funds, Bond Funds, Index Funds, Commodity Funds, ETFs, Debt-oriented schemes, and Equity-oriented schemes. Institutional investors, FIIs, insurance companies, banks, and individual investors invest in these funds for liquidity, income, or capital appreciation. ESG Integration Funds, Negative Screening Funds, and Impact Funds are part of the sustainable strategy segment, focusing on Environmental, Social, and Governance (ESG) factors. Direct sales and financial advisors help investors make informed decisions. They offer the opportunity for capital growth and wealth accumulation over time.
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North America is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America accounted for a major market share in 2023. The mutual funds market in North America experienced significant growth in 2023, driven by active trading and the dominance of the equity market in the US, which holds over 40% of the global equity market share. Mutual funds offer tax efficiency, transparency, and access to centralized stock exchange platforms, making them an attractive investment option for small investors. Income-seeking investors often prefer mutual funds due to their convenience and fair pricing. Digitalized technologies, such as artificial intelligence, blockchain, cloud computing, and big data, have transformed the mutual fund industry.
Further, small fund savers benefit from portfolio management services, which help manage their fund portfolios effectively. The capital market environment encourages mutual fund investments, with authorities promoting tie-ups and e-wallets for easy e-commerce distribution. Despite sales charges and expense ratios, mutual funds remain a popular investment choice for individual investors due to their short-term debt and income generation potential. Developing economies are also witnessing a surge in mutual fund investments, with mutual fund providers expanding their reach to cater to the growing demand. Mutual funds offer a cost-effective alternative to investing in individual securities, making them an accessible investment option for small investors. All such factors are expected to drive regional mutual funds market growth during the forecast period.
The Mutual Fund industry in India has witnessed significant digital penetration, enabling Small Fund Savers to invest in various types of funds with ease. The industry includes Systematic Investment Plans (SIPs) in Equity Funds, Money Market Funds, Index Funds, and Bond Funds. Banks, FIIs, and Insurance Companies are key players in the Investment Fund Industry. Equity strategy plays a crucial role in managing the Fund Portfolio of Equity Funds. Investors seek income through investments in Shares, Bonds, and Securities. The Liquidity needs of investors are catered to through Short term debt instruments. The Mutual Fund market is diverse, with players offering a range of Investment Plans to cater to different investor profiles. Portfolio management services ensure effective management of investor funds. Hedge Funds and Bond Funds are popular choices for experienced investors seeking higher returns. In conclusion, the Mutual Fund market in India is dynamic, with various types of funds catering to different investor needs. Digital penetration has made investing accessible to Small Investors, driving the growth of the industry.
Market liquidity plays a significant role in driving market share growth. Mutual Funds are a popular investment choice due to their high liquidity. The Investment Fund Industry, including Mutual Funds, has seen significant digital penetration, enabling easy access for Retail Investors and Institutional Investors in Smart Cities and Small Towns. Mutual Funds offer various types of schemes, such as Systematic Investment Plans (SIPs), Equity-oriented and Debt-oriented, and specialized funds like ETFs, Sector Funds, Index Funds, Bond Funds, Commodity Funds, and more. Fund Houses provide a wide range of assets under management, including Equities, Fixed Income, and alternative investments like Hedge Funds. Liquidity is a key benefit, allowing for easy switching between funds and flexibility during market volatility.
Moreover, assets are held in Demat CDSL and NSDL accounts, and investments can be made through SIP Accounts, Banks, FIIs, Insurance Companies, and Stocks and Bonds. Liquidity is essential for various investment strategies, such as Equity and Sustainable strategies, which include ESG Integration Funds, Negative Screening Funds, and Impact Funds. Direct sales and Financial Advisors also play a role in Mutual Fund investments. As a result, the market is expected to experience growth during the forecast period due to its high liquidity and associated benefits.
An emerging trend in the market is the growth of mutual fund assets in developing nations. The Mutual Fund industry has experienced significant growth, with Assets under Management (AUM) reaching INR 36.17 trillion (USD 0.48 trillion) in India as of December 31, 2021. This represents a 30% increase over the previous year. Individual investors' assets held by mutual funds have risen from INR 17.18 trillion (0.23 USD trillion) in February 2021 to INR 21.02 trillion (0.28 trillion) in February 2022, a growth of 22.32%. Institutional investors' assets have also increased by 16%. Digital penetration in the mutual fund sector has expanded, enabling investors in Smart Cities and Small Towns to access Systematic Investment Plans (SIPs) and various fund types such as Equity Funds, Bond Funds, Index Funds, Sector Funds, Commodity Funds, and Debt Oriented Schemes through Demat CDSL, NSDL accounts, and SIP accounts.
However, mutual Funds, including Hedge Funds, Money Market Funds, ETFs, and Impact Funds, are popular investment choices for Retail Investors, Institutional Investors, Corporates, FIIs, Insurance Companies, and Banks. The Investment Fund Industry offers various strategies, such as Equity strategy and Sustainable strategy segment, which include ESG Integration Funds, Negative Screening Funds, and Impact Funds. Direct sales and Financial advisors play crucial roles in facilitating investments in mutual funds, providing investors with access to a wide range of investment options and liquidity in Stocks and Bonds. This indicates a promising opportunity that is expected to drive the growth of the mutual fund market during the forecast period.
Transaction risks are major challenges impeding market growth. Mutual funds are investment vehicles popular among retail investors, institutional investors, corporates, and other financial entities. In the digital age, mutual funds have expanded their reach to Smart Cities and small towns, thanks to Demat accounts with CDSL and NSDL, SIP accounts, and other digital platforms. The investment fund industry encompasses various types of funds, including Equity Funds, Bond Funds, Money Market Funds, Index Funds, Commodity Funds, Sector Funds, and others. Hedge funds and ETFs are also part of this landscape. Transaction risks, a concern for corporations dealing in multiple currencies, also apply to mutual funds.
Moreover, the value of assets under management can be affected by currency fluctuations between the investor's home currency and the currency of the mutual fund's assets. This risk is particularly relevant for international funds and those investing in emerging markets. Mutual fund houses offer various investment strategies, such as Equity strategy and Sustainable strategy segment, which include ESG Integration Funds, Negative Screening Funds, and Impact Funds. Liquidity management is crucial for mutual funds to meet redemption requests efficiently. Mutual funds provide investors with access to a diversified portfolio, professional management, and liquidity. They are an essential component of the financial markets, contributing significantly to the economy and financial stability.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aditya Birla Management Corp. Pvt. Ltd. - The company offers mutual funds for tax savings, SGX nifty and savings.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Trillion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Mutual funds have emerged as a popular investment vehicle among individuals and institutions due to their ability to provide diversified investment portfolios. The mutual funds market is driven by various factors including increasing disposable income, financial literacy, and the need for stable returns. The penetration of mutual funds is increasing in sectors such as education, retirement, and income generation. The sector comprises of different types of mutual funds like equity, debt, and hybrid funds. The mutual fund industry is significant as it provides an opportunity for investors to invest in a professionally managed fund, which in turn reduces the risk associated with investing in individual securities. The mutual fund industry is expected to grow due to the increasing awareness about financial planning and the need for diversified investment portfolios. The sector is also expected to benefit from the government's initiatives to promote savings and investments. The mutual fund industry plays a crucial role in the financial market by providing a platform for investors to invest in a diversified portfolio and earn stable returns.
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Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.43% |
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Market growth 2024-2028 |
USD 84 trillion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.64 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 50% |
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Key countries |
US, China, Germany, France, and Australia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aditya Birla Management Corp. Pvt. Ltd., Amundi Austria GmbH, Axis Asset Management Co. Ltd., Baroda BNP Paribas Asset Management India Pvt. Ltd., BlackRock Inc., Canara Robeco Asset Management Co., Edelweiss Asset Management Ltd., FMR LLC, Franklin Templeton, GLP Pte Ltd., HDFC Ltd., ICICI Prudential Asset Management Co. Ltd., IDFC Mutual Fund, JPMorgan Chase and Co., PIMCO, State Street Global Advisors, The Bank of New York Mellon Corp., The Capital Group Companies Inc., The Charles Schwab Corp., and The Vanguard Group Inc. |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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