Global Balanced Funds Market Overview:
Balanced Funds Market Size was estimated at 264.96 (USD Billion) in 2022. The Balanced Funds Market Industry is expected to grow from 275.16 (USD Billion) in 2023 to 386.67 (USD Billion) by 2032. The Balanced Funds Market CAGR (growth rate) is expected to be around 3.85% during the forecast period (2024 - 2032).
Key Balanced Funds Market Trends Highlighted
The demand for predictable returns and growing risk aversion are fueling the Balanced Funds Market's expansion. These mutual funds give clients a diverse investing option by combining stocks with fixed income.
Macroeconomic variables like changes in interest rates and inflation expectations also have an impact on the market.
Favorable regulatory rules, increased investor awareness of risk diversification, and the growing demand for alternative investment options are major market drivers.
The growth of emerging markets, the creation of fresh investing approaches, and the rising use of technology in fund management all present opportunities.
One of the more recent developments is the rise of balanced and sustainable funds, which concentrate on investing in businesses that have good environmental, social, and governance (ESG) policies.
Furthermore, target-date funds—which automatically modify an investor's asset allocation in accordance with their age and retirement objectives—are becoming more and more well-liked.
Since fintech companies and low-cost index providers are competing with established asset managers, the industry is characterized by greater consolidation and rivalry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Balanced Funds Market Drivers
Increasing Demand for Diversified Investments
The demand for balanced fund has been rising over the years as investors show desire to minimize risks and maximize their returns. The balance is achieved through diversification by investing in different asset classes such as stocks, bonds, real estate among other areas.
The assets are structured in a way where the volatility risk is reduced and enhances the total risk-adjusted return to the investor. The need for growing awareness among investors is likely to drive the growth of the Balanced Funds Market Industry.
Growing Popularity of Target-Date Funds
Target-date funds are a type of balanced fund that automatically adjusts the asset allocation based on the investor's age and risk tolerance. As the investor approaches retirement, the fund gradually shifts from growth-oriented assets to more conservative assets.
The convenience and simplicity of target-date funds have made them increasingly popular, particularly among younger investors who may need more time or expertise to manage their own investments.
Rising Disposable Income and Financial Literacy
Rising disposable income and increasing financial literacy among people are creating a positive outlook for the growth of the Balanced Funds Market Industry. People are increasingly looking for investment options that are likely to help them achieve their long-term financial objectives as they have disposable income to spend.
Balanced funds are a diversified, mixed portfolio, and balancing investing option in the market that suits most investors with different risk appetites.
Balanced Funds Market Segment Insights:
Balanced Funds Market Investment Objective Insights
The Investment Objective segment plays a critical role in shaping the Balanced Funds Market segmentation and dynamics. It broadly classifies funds based on their primary investment goals, catering to diverse investor risk appetites and financial objectives.
Let's delve into the key insights and data for each sub-segment within the Investment Objective segment: Growth and Income: This sub-segment targets investors seeking a balance between capital appreciation and regular income. It typically invests in a combination of stocks and bonds, aiming to provide both long-term growth potential and stable income streams.
The Balanced Funds Market revenue for this sub-segment is projected to reach USD 125.67 billion by 2024, driven by increasing demand for balanced investment strategies that offer both growth and income generation.
Moderate Growth appeals to investors seeking moderate capital appreciation with a focus on preserving capital. It typically invests in a mix of stocks and bonds with a higher allocation to bonds, prioritizing capital preservation over aggressive growth.
The Balanced Funds Market data suggests that this sub-segment is expected to witness steady growth, reaching a market size of USD 102.32 billion by 2024.
The Conservative Growth sub-segment is designed for investors with a conservative risk appetite, prioritizing capital preservation and stability over growth potential. It typically invests predominantly in bonds and other fixed-income instruments, offering lower returns but reduced volatility.
The Balanced Funds Market statistics indicate that the conservative growth sub-segment is anticipated to reach USD 87.65 billion by 2024, driven by increasing demand from risk-averse investors.
The Capital Preservation sub-segment is tailored for investors seeking to preserve their capital while minimizing risk. It typically invests primarily in low-risk instruments such as cash equivalents, money market instruments, and short-term bonds.
The Balanced Funds Market industry analysis suggests that the capital preservation sub-segment is projected to reach USD 65.43 billion by 2024, catering to investors with a high focus on capital protection.
The Investment Objective segment's insights highlight the diverse needs of investors in the Balanced Funds Market. With varying risk appetites and financial goals, investors seek balanced funds that align with their specific objectives.
This segmentation enables fund managers to cater to these diverse requirements, providing tailored investment solutions that meet the evolving demands of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Balanced Funds Market Risk Appetite Insights
The Balanced Funds Market revenue is segmented into various risk appetites, including low risk, moderate risk, and high risk. The low-risk segment is expected to account for a significant portion of the market share in 2023, driven by investors seeking stability and preservation of capital.
The moderate-risk segment is anticipated to exhibit steady growth over the forecast period as investors aim to balance potential returns with risk tolerance. The high-risk segment is projected to gain traction among a growing number of investors seeking higher returns despite the associated volatility.
Balanced Funds Market Time Horizon Insights
The Balanced Funds Market segmentation by Time Horizon offers valuable insights into the investment preferences and financial goals of investors. Short-term (less than 5 years) balanced funds cater to investors seeking stability and potential returns over a shorter time frame.
With a Balanced Funds Market revenue projected to reach $125 billion by 2024, this segment targets individuals saving for immediate financial needs or short-term financial goals. Medium-term (5-10 years) balanced funds strike a balance between risk and reward, attracting investors with a moderate risk appetite and a slightly longer investment horizon.
This segment is expected to account for $170 billion by 2024, aligning with investors' goals such as saving for a down payment on a house or retirement. Long-term (10+ years) balanced funds are designed for investors with a high-risk tolerance and a long-term perspective.
Targeting retirement planning or wealth accumulation, this segment is anticipated to reach $220 billion by 2024. The Balanced Funds Market data indicates a growing preference for Long-Term balanced funds as investors seek to optimize their returns over an extended period.
Balanced Funds Market Asset Allocation Insights
The Asset Allocation segment plays a crucial role in the Balanced Funds Market, with various sub-segments catering to different risk-return profiles. Equity and Debt funds allocate assets between stocks and bonds, offering a balance of growth potential and stability.
Equity-Oriented Hybrid Funds invest primarily in stocks, while Debt-Oriented Hybrid Funds focus on bonds, providing investors with varying levels of equity exposure. Dynamic Asset Allocation Funds offer flexibility, adjusting asset allocation based on market conditions.
The Balanced Funds Market revenue for the Asset Allocation segment is anticipated to reach $275.16 billion by 2023, driven by increasing investor demand for diversified and risk-adjusted investment options.
The segmentation offers data and statistics on the growth, trends, and competitive landscape within the Asset Allocation segment of the Balanced Funds Market.
Balanced Funds Market Investment Strategy Insights
The Balanced Funds Market segmentation by Investment Strategy is categorized into Active Management and Passive Management. Active Management segment accounted for a larger revenue share in 2023 and is projected to maintain its dominance throughout the forecast period.
This is primarily due to the increasing demand for professional fund management services that aim to outperform the benchmark index. Active management involves actively buying and selling securities to generate alpha, or excess returns, over the benchmark.
This strategy requires a high level of skill and expertise, and investors are willing to pay a higher fee for this service.
The Passive Management segment, on the other hand, is gaining traction due to its lower cost structure and simplicity. Passive management involves tracking and replicating a specific index, such as the S 500 or FTSE 100.
This strategy does not require active decision-making, which reduces the fund's operating expenses. As a result, passive management funds typically have lower fees than active management funds.
Balanced Funds Market Regional Insights
Regionally, North America dominated the market in 2023, with a market share of around 40%. However, APAC is expected to witness the highest growth rate during the forecast period, owing to the increasing demand for balanced funds in countries such as China and India.
Europe is also expected to contribute significantly to the growth of the market, with countries such as the UK, Germany, and France being major contributors.
South America and MEA are expected to account for a smaller share of the market but are expected to grow at a steady pace during the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Balanced Funds Market Key Players and Competitive Insights:
Leading players in the Balanced Funds Market are continuously seeking to gain a larger market share by coming up with innovative and modified products and services. Major companies are focusing on investing in research and development to come up with investment strategies that meet the changing demands of investors.
Moreover, the Balanced Funds Market is marked by the intensity of the competition of key players seeking to expand their market share and customer bases. To succeed in this market, it is important to have strong financial performance, a strong and widespread distribution network, and a commitment to customer service.
Vanguard is one of the leading companies in the Balanced Funds Market. The company is renowned for its inexpensive index funds and exchange traded funds. The company provides a wide variety of balanced funds in the form of target date retirement funds and asset allocation.
The success factors that contribute to Vanguard's leading position in the market are its strong brand name, effective distribution network, and competitive fees.
Another key competitor in the Balanced Funds Market is BlackRock. It should be noted that BlackRock is the world's leading asset manager. The company offers a wide range of balanced fund products under the iShares family name.
The main competitive factors of BlackRock as a major player in the Balanced Market Industry are its strong and effective international presence and scope, strong investment management capabilities and innovative product range.
In addition, BlackRock has other balanced funds that are continuously emerging to serve customers better.
Key Companies in the Balanced Funds Market Include:
- BlackRock
- Charles Schwab
- Goldman Sachs
- Fidelity Investments
- BNP Paribas
- Deutsche Bank
- Wells Fargo
- Citigroup
- Morgan Stanley
- UBS Group AG
- Bank of America
- Vanguard
- Credit Suisse Group
- JPMorgan Chase
Balanced Funds Industry Developments
The Balanced Funds Market is expected to witness significant growth over the forecast period, driven by increasing investor demand for diversified and less risky investment options. The growing popularity of balanced funds among both retail and institutional investors is primarily attributed to their ability to provide a balance between potential returns and risk management.
Balanced funds typically invest in a mix of stocks, bonds, and other asset classes, aiming to achieve a moderate level of risk and return. Recent news developments indicate a surge in demand for balanced funds due to market volatility and geopolitical uncertainties.
The increasing awareness of financial planning and wealth management among investors is further expected to drive the growth of the Balanced Funds Market in the coming years.
Balanced Funds Market Segmentation Insights
Balanced Funds Market Investment Objective Outlook
- Growth and Income
- Moderate Growth
- Conservative Growth
- Capital Preservation
Balanced Funds Market Risk Appetite Outlook
- Low Risk
- Moderate Risk
- High Risk
Balanced Funds Market Time Horizon Outlook
- Short-Term (less than 5 years)
- Medium-Term (5-10 years)
- Long-Term (10+ years)
Balanced Funds Market Asset Allocation Outlook
- Equity and Debt
- Equity-Oriented Hybrid Funds
- Debt-Oriented Hybrid Funds
- Dynamic Asset Allocation Funds
Balanced Funds Market Investment Strategy Outlook
- Active Management
- Passive Management
Balanced Funds Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
264.96 (USD Billion) |
| Market Size 2023 |
275.16 (USD Billion) |
| Market Size 2032 |
386.67 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.85% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
BlackRock, Charles Schwab, Goldman Sachs, Fidelity Investments, BNP Paribas, Deutsche Bank, Wells Fargo, Citigroup, Morgan Stanley, UBS Group AG, Bank of America, Vanguard, Credit Suisse Group, JPMorgan Chase |
| Segments Covered |
Investment Objective, Risk Appetite, Time Horizon, Asset Allocation, Investment Strategy, Regional |
| Key Market Opportunities |
Increasing demand for income-generating investments.Growing popularity of balanced funds among risk-averse investors.Expansion of investment options in balanced funds.Rise of digital wealth management platforms.Growing awareness of balanced funds as a long-term investment strategy. |
| Key Market Dynamics |
Aging population increasing demand for retirement planning.Growing affluence and wealth accumulation in emerging markets.Low interest rates driving the search for higher yield product.The rise of rob advisors and digital platforms increasing accessibility.Regulatory changes favoring balanced funds as a low-risk investment option. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Balanced Funds Market is projected to reach an overall valuation of 275.16 USD Billion in 2023.
The Balanced Funds Market is projected to reach an overall valuation of 386.67 USD Billion in 2032.
The Balanced Funds Market is expected to Register a CAGR of 3.85% from 2024 to 2032.
The Asia-Pacific region is expected to hold the largest market share in the Balanced Funds Market due to the increasing demand for balanced funds from retail and institutional investors.
The retirement planning segment is expected to have the highest growth rate in the Balanced Funds Market due to the increasing number of people retiring and seeking financial security.
Some of the key competitors in the Balanced Funds Market include BlackRock, Vanguard, Fidelity Investments, and JPMorgan Chase.
The key factors driving the growth of the Balanced Funds Market include the increasing demand for balanced funds from retail and institutional investors, the rising popularity of target-date funds, and the increasing awareness of the benefits of balanced funds.
The key challenges facing the Balanced Funds Market include the increasing competition from other investment products, the regulatory changes, and the economic uncertainty.
The COVID-19 pandemic is expected to have a negative impact on the Balanced Funds Market in the short term due to the market volatility and the economic uncertainty. However, in the long term, the pandemic is expected to drive the growth of the Balanced Funds Market as investors seek more stable and diversified investments.
The key opportunities for growth in the Balanced Funds Market include the increasing demand for balanced funds from retail and institutional investors, the rising popularity of target-date funds, and the increasing awareness of the benefits of balanced funds.
