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Mutual Fund Asset Market

ID: MRFR/BS/22039-HCR
200 Pages
Garvit Vyas
October 2025

Mutual Fund Asset Market Size, Share and Research Report By Investment Objective (Capital Appreciation, Income Generation, Capital Preservation, Tax Savings, Retirement Planning), By Risk Tolerance (Conservative, Moderate, Aggressive), By Investment Horizon (Short-term (less than 3 years), Medium-term (3-7 years), Long-term (over 7 years)), By Asset Class (Equity Funds, Debt Funds, Hybrid Funds, Gold Funds, Alternative Investment Funds), By Fund Category (Open-Ended Funds, Close-Ended Funds, Exchange-Traded Funds (ETFs), Fund of Funds) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Industry Forecast Till 2035

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Mutual Fund Asset Market Infographic
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Mutual Fund Asset Market Summary

As per MRFR analysis, the Mutual Fund Asset Market was estimated at 51236.2 USD Billion in 2024. The Mutual Fund Asset industry is projected to grow from 56677.61 USD Billion in 2025 to 155509.73 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 10.62 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Mutual Fund Asset Market is currently experiencing a transformative phase characterized by a shift towards sustainable investments and technological integration.

  • The focus on sustainable investment strategies is increasingly shaping fund offerings in North America.
  • Technology-driven platforms are revolutionizing the way retail investors access mutual funds, particularly in the Asia-Pacific region.
  • Passive investment strategies are gaining traction among both retail and institutional investors, reflecting a broader market trend.
  • Regulatory changes and increased investor education are driving growth in hybrid funds, particularly among institutional investors.

Market Size & Forecast

2024 Market Size 51236.2 (USD Billion)
2035 Market Size 155509.73 (USD Billion)
CAGR (2025 - 2035) 10.62%

Major Players

BlackRock (US), Vanguard Group (US), Fidelity Investments (US), State Street Global Advisors (US), J.P. Morgan Asset Management (US), BNY Mellon Investment Management (US), T. Rowe Price (US), Invesco (US), Amundi (FR), Legal & General Investment Management (GB)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

Mutual Fund Asset Market Trends

The Mutual Fund Asset Market is currently experiencing a dynamic phase characterized by evolving investor preferences and regulatory changes. Investors are increasingly gravitating towards sustainable and socially responsible investment options, reflecting a broader societal shift towards environmental consciousness. This trend appears to be influencing fund managers to adapt their strategies, integrating ESG (Environmental, Social, and Governance) criteria into their investment processes. Furthermore, the rise of technology-driven platforms is reshaping how investors access and manage their mutual fund investments, potentially enhancing transparency and efficiency in the market. In addition, the Mutual Fund Asset Market is witnessing a growing interest in passive investment strategies, which may suggest a shift away from traditional active management approaches. This inclination towards index funds and exchange-traded funds (ETFs) indicates that investors are seeking cost-effective solutions that offer market exposure without the higher fees associated with active management. As the landscape continues to evolve, it is essential for stakeholders to remain vigilant and responsive to these trends, ensuring that they align with the changing demands of investors and the regulatory environment.

Sustainable Investment Focus

There is a noticeable shift towards sustainable investment options within the Mutual Fund Asset Market. Investors are increasingly prioritizing funds that adhere to ESG criteria, reflecting a growing awareness of social and environmental issues.

Rise of Technology-Driven Platforms

The emergence of technology-driven platforms is transforming the Mutual Fund Asset Market. These platforms enhance accessibility and transparency, allowing investors to manage their portfolios more efficiently.

Growing Popularity of Passive Strategies

The Mutual Fund Asset Market is seeing a trend towards passive investment strategies. Investors are favoring index funds and ETFs, which offer lower costs and broad market exposure compared to traditional active management.

Mutual Fund Asset Market Drivers

Growing Investor Awareness

The Global Mutual Fund Asset Market Industry is experiencing a notable increase in investor awareness regarding the benefits of mutual funds. As individuals become more educated about investment options, the demand for mutual funds is likely to rise. This trend is particularly evident in emerging markets, where financial literacy initiatives are gaining traction. In 2024, the market is projected to reach 51236.2 USD Billion, reflecting a growing inclination among investors to diversify their portfolios through mutual funds. This heightened awareness is expected to contribute significantly to the industry's growth trajectory.

Market Segment Insights

By Investor Type: Retail Investor (Largest) vs. Institutional Investor (Fastest-Growing)

The Mutual Fund Asset Market is characterized by diverse investor types, with Retail Investors commanding the largest market share. This group consists of individual investors who purchase mutual funds for personal portfolio growth, significantly impacting the market dynamics. In contrast, Institutional Investors, such as pension funds and insurance companies, are becoming an increasingly critical part of the market landscape, as their investments drive substantial capital flows and influence fund management strategies. Growth trends indicate that Institutional Investors are on the rise, mainly due to their ability to leverage substantial resources and negotiate favorable terms with fund managers. This segment is expected to outpace Retail Investors in growth due to increasing financial literacy and an evolving investment landscape, where professional management and risk diversification are prioritized over traditional investment avenues.

Retail Investor (Dominant) vs. Corporate Investor (Emerging)

The Retail Investor segment remains dominant in the Mutual Fund Asset Market due to its broad accessibility and simplicity, attracting a significant number of individual investors seeking to build long-term wealth. Retail Investors often prefer mutual funds for their ease of entry, diversified portfolios, and professional management. On the other hand, Corporate Investors are emerging as a noteworthy segment, utilizing mutual funds as part of their financial strategies for surplus cash management and investment diversification. As corporations increasingly recognize the advantages of mutual funds for liquidity and investment growth, this segment is poised to expand, albeit at a slower pace compared to Retail Investors. The interaction between these two segments highlights the diverse investment behaviors and strategic aspirations within the market.

By Fund Type: Equity Fund (Largest) vs. Hybrid Fund (Fastest-Growing)

The Mutual Fund Asset Market is primarily dominated by Equity Funds, which capture the largest share of the market distribution due to their higher risk-return profile attracting a diverse investor demographic. Following closely are Debt Funds, known for their stability and lower risk, appealing mainly to conservative investors. Hybrid Funds have seen substantial growth, marking them as an emerging choice among investors seeking a balanced risk-return ratio, thereby increasing their share in recent years. Index Funds, while still a smaller player, are slowly gaining traction, characterized by their cost-effectiveness and passive management. The growth trends in this segment are significantly driven by changing investor preferences, with a noticeable shift towards risk-managed investment options that Hybrid Funds offer. Additionally, increased market awareness and financial literacy have resulted in more investors diversifying their portfolios through Equity and Hybrid Funds. The introduction of innovative fund offerings and enhanced digital platforms for investment have further accelerated this growth. Overall, while Equity Funds remain the dominant payment choice, the rise of Hybrid Funds suggests a changing landscape in the mutual fund domain.

Equity Fund (Dominant) vs. Debt Fund (Emerging)

Equity Funds are characterized by their investment in stocks, providing potential for high returns, making them the preferred choice for investors looking for growth. Dominating the Mutual Fund Asset Market, they cater to risk-tolerant investors who compete with high volatility in pursuit of capital appreciation. Conversely, Debt Funds focus on fixed income from bonds, making them less volatile and appealing to risk-averse investors. They serve as a stabilizing force within investor portfolios, ensuring steady returns during uncertain economic times. This contrast highlights the diversity within the Mutual Fund Asset Market, as investors strategically choose between Equity and Debt Funds based on their financial goals and risk tolerance.

By Investment Strategy: Active Management (Largest) vs. Passive Management (Fastest-Growing)

In the Mutual Fund Asset Market, the investment strategies are notably segmented into Active Management, Passive Management, Value Investing, and Growth Investing. Currently, Active Management holds a significant market share, reflecting the traditional approach to fund management where fund managers actively select investments to outperform benchmarks. In contrast, Passive Management, which aims to replicate market indices through ETFs and index funds, has gained a rapid foothold, appealing to cost-conscious investors seeking lower fees and predictable returns.

Active Management: (Dominant) vs. Passive Management (Emerging)

Active Management remains the dominant strategy in the Mutual Fund Asset Market, characterized by a hands-on approach from fund managers who make informed decisions based on extensive Market Research Future and analysis. This strategy is often favored by investors who seek to capitalize on market inefficiencies and achieve superior returns. However, Passive Management is emerging rapidly, drawing in investors with its simplicity, lower expenses, and consistent performance relative to market benchmarks. This strategy attracts a broad demographic, including younger investors and those looking for long-term, hassle-free investment options.

By Risk Profile: Conservative (Largest) vs. Speculative (Fastest-Growing)

In the Mutual Fund Asset Market, the 'Risk Profile' segment showcases a diverse distribution among Conservative, Moderate, Aggressive, and Speculative categories. The Conservative segment commands the largest market share, appealing to risk-averse investors seeking stability and consistent returns. In contrast, the Speculative segment is attracting an increasing number of investors drawn to high-risk, high-reward opportunities, reflecting a shift in market dynamics where growth potential is prioritized over security. The growth trends within the Risk Profile segment reveal a growing appetite for diversified investment strategies. While Conservative mutual funds remain popular for their safety, Speculative funds are experiencing the fastest growth due to rising investor confidence and a cultural shift towards embracing higher risks. This dual trend indicates a balanced market, where risk tolerance levels are evolving, allowing investors to better align their portfolios with personal financial goals and market conditions.

Conservative (Dominant) vs. Aggressive (Emerging)

The Conservative segment in the Mutual Fund Asset Market represents a dominant force, characterized by low volatility and steady returns, making it a preferred choice for risk-averse investors, including retirees and those nearing retirement. These funds typically prioritize capital preservation and income generation through fixed-income securities. Conversely, the Aggressive segment is gaining appeal, particularly among younger and more risk-tolerant investors seeking high growth. Aggressive funds usually invest in equities and sectors with significant growth potential, aiming for substantial capital appreciation despite the higher risk involved. As market conditions fluctuate, these two segments offer contrasting yet essential strategies, reflecting diverse investor profiles and facilitating tailored investment approaches.

Get more detailed insights about Mutual Fund Asset Market

Regional Insights

North America : Market Leader in Assets

North America continues to lead the Mutual Fund Asset Market, holding a significant market share of 25618.1 million. The region's growth is driven by increasing investor confidence, a robust regulatory framework, and a diverse range of investment options. The demand for mutual funds is bolstered by rising disposable incomes and a growing awareness of investment benefits among the population. Regulatory support, including tax incentives for retirement accounts, further catalyzes market expansion. The competitive landscape in North America is characterized by the presence of major players such as BlackRock, Vanguard Group, and Fidelity Investments. These firms dominate the market, offering a wide array of mutual fund products tailored to various investor needs. The U.S. remains the leading country, with a well-established financial infrastructure that supports mutual fund growth. The ongoing trend towards digital investment platforms is also reshaping the market dynamics, making it more accessible to retail investors.

Europe : Emerging Investment Hub

Europe's Mutual Fund Asset Market is witnessing significant growth, with a market size of 15374.0 million. The region benefits from a strong regulatory environment that encourages investment in mutual funds, alongside increasing demand for diversified investment options. Factors such as low-interest rates and economic recovery post-pandemic are driving investors towards mutual funds as a viable alternative for wealth accumulation. The European market is also adapting to sustainable investment trends, which are becoming increasingly important for investors. Leading countries in this region include Germany, France, and the UK, where major players like Amundi and Legal & General Investment Management are prominent. The competitive landscape is evolving, with a growing number of asset managers entering the market to cater to diverse investor preferences. The European Securities and Markets Authority emphasizes the importance of transparency and investor protection, which is crucial for maintaining market integrity and fostering investor confidence.

Asia-Pacific : Rapidly Growing Market

The Asia-Pacific region is emerging as a significant player in the Mutual Fund Asset Market, with a market size of 8000.0 million. The growth is driven by increasing urbanization, rising disposable incomes, and a growing middle class that is more inclined to invest in mutual funds. Regulatory reforms aimed at enhancing market accessibility and investor protection are also contributing to this growth. The region is witnessing a shift towards digital platforms, making mutual funds more accessible to a broader audience. Countries like China, India, and Australia are leading the charge in this market. The competitive landscape features both local and international players, with firms like Invesco and T. Rowe Price expanding their presence. The demand for innovative investment products tailored to local preferences is on the rise, and asset managers are increasingly focusing on ESG (Environmental, Social, and Governance) criteria to attract socially conscious investors.

Middle East and Africa : Emerging Market Opportunities

The Middle East and Africa (MEA) region is gradually developing its Mutual Fund Asset Market, currently valued at 2444.1 million. The growth is fueled by increasing financial literacy and a shift towards investment diversification among local investors. Regulatory bodies are working to enhance the investment climate, promoting mutual funds as a viable investment option. The region's economic diversification efforts are also encouraging investments in mutual funds, particularly in emerging markets. Leading countries in this region include South Africa and the UAE, where local asset managers are gaining traction. The competitive landscape is characterized by a mix of traditional and modern investment approaches, with firms adapting to local market needs. The presence of international players is also growing, as they seek to tap into the region's potential. The Financial Services Regulatory Authority emphasizes the importance of investor education to foster a more robust mutual fund market.

Mutual Fund Asset Market Regional Image

Key Players and Competitive Insights

The Mutual Fund Asset Market is characterized by a dynamic competitive landscape, driven by factors such as increasing investor awareness, technological advancements, and a growing preference for diversified investment portfolios. Major players like BlackRock (US), Vanguard Group (US), and Fidelity Investments (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. BlackRock (US) emphasizes innovation through its Aladdin platform, which integrates risk management and investment analytics, thereby enhancing client engagement and operational efficiency. Vanguard Group (US), on the other hand, focuses on low-cost index funds and ETFs, appealing to cost-conscious investors while maintaining a strong commitment to fiduciary responsibility. Fidelity Investments (US) is actively expanding its digital offerings, enhancing user experience through advanced technology and personalized investment solutions, which collectively shape a competitive environment that prioritizes customer-centric approaches.The business tactics employed by these firms reflect a nuanced understanding of market demands. For instance, localizing services and optimizing digital platforms are critical in addressing diverse investor needs. The market structure appears moderately fragmented, with a few dominant players exerting considerable influence. This concentration allows for strategic collaborations and partnerships, which can enhance service offerings and operational capabilities across the sector.

In November BlackRock (US) announced a strategic partnership with a leading fintech firm to enhance its data analytics capabilities. This move is likely to bolster its competitive edge by providing clients with more tailored investment insights and improving decision-making processes. Such partnerships indicate a trend towards integrating advanced technologies to meet evolving investor expectations.

In October Vanguard Group (US) launched a new suite of sustainable investment funds aimed at environmentally conscious investors. This initiative not only aligns with global sustainability trends but also positions Vanguard as a leader in responsible investing, potentially attracting a new demographic of investors who prioritize ethical considerations in their investment choices.

In September Fidelity Investments (US) expanded its robo-advisory services, introducing AI-driven portfolio management tools. This strategic enhancement reflects a growing trend towards automation in investment management, catering to tech-savvy investors seeking efficient and cost-effective solutions. The integration of AI into their offerings may significantly improve client satisfaction and retention.

As of December the Mutual Fund Asset Market is witnessing transformative trends such as digitalization, sustainability, and AI integration. Strategic alliances among key players are reshaping the competitive landscape, fostering innovation and enhancing service delivery. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to innovate and adapt to changing market dynamics.

Key Companies in the Mutual Fund Asset Market include

Industry Developments

  • Q2 2024: Franklin Templeton to acquire Putnam Investments for $925 million Franklin Templeton announced its agreement to acquire Putnam Investments, a major mutual fund manager, for $925 million, expanding its asset management capabilities and distribution network.
  • Q2 2024: JPMorgan Converts Four Mutual Funds to ETFs Amid Industry Shift JPMorgan Asset Management completed the conversion of four of its mutual funds into exchange-traded funds (ETFs), reflecting a growing trend among asset managers to adapt to investor demand for more flexible investment vehicles.
  • Q1 2024: BlackRock appoints new head of mutual fund distribution for Europe BlackRock named a new executive to lead its mutual fund distribution efforts in Europe, aiming to strengthen its presence and client relationships in the region.
  • Q2 2024: Fidelity Investments Launches New Actively Managed Mutual Fund Focused on AI Fidelity Investments introduced a new actively managed mutual fund targeting companies in the artificial intelligence sector, expanding its product offerings for retail and institutional investors.
  • Q1 2024: Dimensional Fund Advisors Completes Acquisition of ETF Issuer Brinker Capital Dimensional Fund Advisors finalized its acquisition of Brinker Capital, an ETF and mutual fund provider, to enhance its investment platform and product suite.
  • Q2 2024: Vanguard launches new ESG mutual fund for European investors Vanguard announced the launch of a new ESG-focused mutual fund designed for European investors, responding to increasing demand for sustainable investment options.
  • Q1 2025: Morgan Stanley acquires Parametric to bolster SMA and mutual fund capabilities Morgan Stanley completed the acquisition of Parametric, a leading provider of separately managed accounts (SMAs) and mutual fund solutions, to expand its investment management offerings.
  • Q2 2025: Fidelity International opens new mutual fund operations center in Dublin Fidelity International inaugurated a new operations center in Dublin to support its growing mutual fund business in Europe, enhancing its operational capacity and client service.
  • Q1 2024: T. Rowe Price launches global equity mutual fund T. Rowe Price introduced a new global equity mutual fund, expanding its product lineup to meet investor demand for international diversification.
  • Q2 2024: Schroders partners with Singapore fintech to launch digital mutual fund platform Schroders announced a partnership with a Singapore-based fintech company to launch a digital platform for mutual fund distribution, aiming to reach new retail investors in Asia.
  • Q1 2025: Invesco launches blockchain-focused mutual fund Invesco launched a new mutual fund focused on companies developing blockchain technologies, targeting investors interested in emerging tech sectors.
  • Q2 2025: Amundi acquires minority stake in Indian mutual fund firm Amundi acquired a minority stake in an Indian mutual fund company, strengthening its presence in the fast-growing Indian asset management market.

Future Outlook

Mutual Fund Asset Market Future Outlook

The Mutual Fund Asset Market is projected to grow at a 10.62% CAGR from 2025 to 2035, driven by increasing investor awareness, technological advancements, and regulatory support.

New opportunities lie in:

  • Development of AI-driven investment platforms
  • Expansion of ESG-focused mutual fund offerings
  • Integration of blockchain for enhanced transparency and security

By 2035, the Mutual Fund Asset Market is expected to achieve substantial growth and innovation.

Market Segmentation

Mutual Fund Asset Market Fund Type Outlook

  • Equity Fund
  • Debt Fund
  • Hybrid Fund
  • Index Fund

Mutual Fund Asset Market Risk Profile Outlook

  • Conservative
  • Moderate
  • Aggressive
  • Speculative

Mutual Fund Asset Market Investor Type Outlook

  • Retail Investor
  • Institutional Investor
  • High Net Worth Individual
  • Corporate Investor

Mutual Fund Asset Market Investment Strategy Outlook

  • Active Management
  • Passive Management
  • Value Investing
  • Growth Investing

Report Scope

MARKET SIZE 202451236.2(USD Billion)
MARKET SIZE 202556677.61(USD Billion)
MARKET SIZE 2035155509.73(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)10.62% (2025 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledBlackRock (US), Vanguard Group (US), Fidelity Investments (US), State Street Global Advisors (US), J.P. Morgan Asset Management (US), BNY Mellon Investment Management (US), T. Rowe Price (US), Invesco (US), Amundi (FR), Legal & General Investment Management (GB)
Segments CoveredInvestor Type, Fund Type, Investment Strategy, Risk Profile
Key Market OpportunitiesIntegration of artificial intelligence in portfolio management enhances decision-making in the Mutual Fund Asset Market.
Key Market DynamicsRising investor preference for sustainable funds drives competition and innovation in the Mutual Fund Asset Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA
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FAQs

What is the expected market size of the Mutual Fund Asset Market in 2024?

The Mutual Fund Asset Market is expected to reach a valuation of 48945.6 USD Billion in 2024.

What is the expected CAGR of the Mutual Fund Asset Market from 2025 to 2035?

The Mutual Fund Asset Market is predicted to grow at a CAGR of 10.62% from 2025 to 2035.

Which region is expected to hold the largest market share in the Mutual Fund Asset Market in 2023?

North America is expected to hold the largest market share in the Mutual Fund Asset Market in 2023.

What are the key applications of Mutual Funds?

Mutual Funds are primarily used for investment purposes, such as retirement planning, wealth accumulation, and risk diversification.

Who are the key competitors in the Mutual Fund Asset Market?

Key competitors in the Mutual Fund Asset Market include Vanguard, BlackRock, and State Street Advisors.

What are the major factors driving the growth of the Mutual Fund Asset Market?

The growth of the Mutual Fund Asset Market is driven by factors such as rising disposable income, increasing financial literacy, and growing demand for investment products.

What are the challenges faced by the Mutual Fund Asset Market?

The Mutual Fund Asset Market faces challenges such as market volatility, regulatory changes, and competition from other investment products.

What is the expected market size of the Mutual Fund Asset Market in 2035?

The Mutual Fund Asset Market is projected to reach a valuation of 114714.5 USD Billion by 2035.

What is the role of technology in the Mutual Fund Asset Market?

Technology is transforming the Mutual Fund Asset Market by enabling online investment platforms, automated portfolio management, and data analytics.

What are the emerging trends in the Mutual Fund Asset Market?

Emerging trends in the Mutual Fund Asset Market include the rise of ESG investing, the growing popularity of target-date funds, and the increasing adoption of robo-advisors.

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