- Summary
- Table Of Content
- Methodology
Mutual Fund Assets Market Size :
Consegic Business Intelligence analyzes that the mutual fund assets market size is growing with a CAGR of 9.3% during the forecast period (2024-2031). The market accounted for USD 612.32 billion in 2023 and it is projected to be valued at USD 1,246.22 billion by 2031.
Mutual Fund Assets Market Definition & Overview :
Mutual fund assets are the total market value of all securities within a mutual fund portfolio. The total value of securities held within a mutual fund is represented by its assets. These funds invest in a diverse range of stocks, bonds, and other financial instruments by joining the money of several investors. The market value of these securities affects the assets under management (AUM). The performance of the funds affects the investor's returns because changes in the portfolio gain or losses have an immediate effect on the fund's net asset value (NAV).
Individuals easily access a portfolio with varied investments, which is managed by qualified fund managers through mutual funds. By distributing investments across a range of assets, diversification reduces risk. Potential capital growth, dividend or interest income, and professional fund management experience are all advantageous to investors. These assets are also traded with ease, giving investors liquidity to buy or trade shares at the current NAV. Observing the mutual fund assets helps investors evaluate the size, popularity, and general opportunities of the fund.
Mutual Fund Assets Market Insights :
Mutual Fund Assets Market Dynamics - (DRO) :
Key Drivers :
Rise in awareness about the benefits of mutual fund assets
The rise in awareness regarding the benefits of various mutual funds is encouraging people to invest in various mutual fund schemes. There are various reasons for the growing recognition of the advantages of investing in mutual funds. The role of educational initiatives, various online resources, and financial education initiatives have been essential in providing investors with information regarding the benefits of mutual funds. As per the analysis, because of various awareness programs, people realize mutual funds are an easy and well-managed way to engage in the financial markets as they learn more about investing options.
The purpose of application programs is to increase public awareness of the benefits of various mutual fund assets by providing an extensive collection of interactive tools and educational resources. To understand the principles of mutual funds, users can easily access content such as articles, videos, and tutorials through the internet. Personalized features such as risk profiling and fund recommendations are integrated into the platform which customizes investment recommendations according to user preferences and financial objectives. As per the analysis, by offering useful tools like goal planning features and calculators, the mutual fund provider enables users to see the long-term advantages of mutual funds and make informed decisions regarding mutual fund investments. Various mutual fund providers are taking initiatives to create awareness about mutual fund benefits through newsletters, tutorials, and videos.
For instance,
- IDFC mutual funds released an investor awareness film on YouTube. The film mentions the various investors and their approaches towards investing.
Thus, the increasing awareness about mutual funds is boosting the demand and trends of the market.
Tax benefits of investing in mutual funds
The market for mutual fund assets is driven primarily by tax benefits since investors want to maximize returns while minimizing their tax obligations. A significant benefit is the possibility of advantageous capital gain tax treatment, especially for long-term investments, which presents investors with a more tax-efficient approach than direct stock holding. The divided treatment of mutual funds also offers tax benefits, with some distributions being eligible for reduced tax rates.
As per the analysis, the use of tax-advantaged accounts like 401(k)s and IRAs, where investments in mutual funds grow tax-free or tax-deferred, adds to their appeal. Fund managers often use tax-efficient strategies to reduce taxable events in the fund's portfolio. Additionally, the natural diversity found in mutual funds can help balance out capital gains and losses.
For instance,
- WhiteOak launched its six new mutual funds scheme. The schemes generally consist of a flexicap fund, a combined large and midcap fund, a midcap fund, a tax saver fund, and a global emerging market fund. The tax savings fund is an open-ended equity-linked savings scheme. The fund allows investors to save on taxes while aiming to generate capital from a portfolio.
Thus, these investments to save taxes are boosting the demand and trends of the market.
Key Restraints :
Rising interest rates and high debt levels
High levels of existing debt and rising interest rates present challenges for the mutual fund assets market. Consumer's cost of borrowing goes up with interest rates, making mutual funds more costly. This may discourage people from looking for further financial assistance, which could result in a decline in the number of people opting for mutual loans. Because of their high levels of debt more difficult and makes it harder for borrowers to qualify for new mutual fund assets. Additionally, as per the analysis, lenders might become less willing to give credit to people who are already heavily in debt, which would lower the number of mutual funds.
Bond prices move inversely to interest rates, so bond funds may see a decrease in value in the context of interest rates. This effect is particularly relevant to fixed-income mutual funds, as it may result in capital loss. In addition, the increased interest rates may result in higher borrowing costs for equity funds that use leverage, which could have an impact on returns and profitability. Furthermore, borrowers may experience more financial stress as a result of the combination of rising interest rates and high debt. Increased interest rates on both new and current mutual funds may put pressure on household finances and make it harder for borrowers to fulfill their financial commitments. This therefore leads to a rise in failing to repay loans, putting lenders and borrowers at risk. Thus the rising interest and high debt levels are restraining the demand of the market.
Future Opportunities :
Technological advancements in mutual funds
Significant technological advancements in mutual funds have completely changed the financial landing,and creating lucrative trends and opportunities. With new features for managing accounts and conducting transactions, mobile banking apps have given users access to a new level of flexibility. By using facial and fingerprint recognition, biometric authentication improves security and accelerates user verification. Decentralized and secure alternatives to centralized digital transactions are introduced by blockchain technologies and cryptocurrencies such as Bitcoin. Machine learning (ML) and artificial intelligence (AI) are essential for risk assessment, fraud detection, and customized facilities for customers.
Customer service is guaranteed to be prompt and effective because of the integration of chatbox and virtual assistants. By allowing safe data sharing between financial organizations outside developers, open banking API encourages innovations. Near-field communications and QR Codes are the technologies that enable contactless payments to improve both transaction speed and hygiene. As per the analysis, scalable and affordable solutions are offered by cloud computing, and ongoing security strengthens defenses against changing cyber threats. Various advancements are observed in ATMs for cardless and cashless transactions.
For instance,
- According to the India Brand Equity Foundation, in September 2023, Hitachi Payments collaborated with NPCI to launch India's first-ever UPI-ATM. The concept is to provide cash even in rural areas without the need for a physical card.
Thus, these technological advancements are creating lucrative mutual fund assets market opportunities and trends in the coming years.
Mutual Fund Assets Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 1,246.22 Billion |
| CAGR (2024-2031) | 9.3 % |
| By Type | Stock fund/ Equity fund, Bond fund, Index fund, Balanced fund, Money market fund, Hybrid funds, and Others |
| By Investment Strategy | Equity Strategy, Fixed Income Strategy, Multi-Asset/Balanced Strategy, Sustainable strategy, Market timing strategy, Buy and hold strategy, and Others |
| By Distribution Channel | Banks, Financial advisors, Direct Seller, and Others |
| By Region | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Players | The Vanguard Group, Inc, FMR LLC, Capital Group, Invesco Mutual Fund, JPMorgan Chase & Co., BlackRock, Inc T. Rowe Price, Aditya Birla Capital Ltd, SLGI Asset Management Inc., (Sun LifeAssurance Company of Canada), Royal Bank of Canada, HDFC Mutual Funds, UTI Mutual fund |
| Geographies Covered | |
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Mutual Fund Assets Market Segmental Analysis :
Based on the Type :
The Type is categorized into stock fund/ equity fund, bond fund, index fund, balanced fund, money market fund, hybrid fund, and others. In 2023, the equity fund segment accounted for the highest mutual fund assets market share and is expected to hold the highest CAGR over the forecast period in the mutual fund assets market. An equity fund is a particular kind of mutual fund that makes its principal investments in stocks or other equities, which are ownership stakes in publicly traded corporations. An equity fund objective is to create appreciation by taking part in this business expansion. By spreading risk among a wide range of stocks from different market capitalizations, industries, and sectors, equity funds provide investors with diversification. Equity funds come in a variety of forms such as growth funds, value funds, and income and dividend funds put an emphasis on generating consistent income from dividend-paying stocks. Expert fund managers actively manage equity funds, choosing which stock to buy and sell based on in-depth research on companies, the market, and economic trends. Based on the analysis, they have a high degree of fluctuation even though they can yield higher returns than more cautious investments. A lot of individuals invest in equity funds.
For instance, According to the Indian Brand Equity Foundation, in 2023, reported that Private Equity-Venture Capital (PE-VC) funds invested USS 6 billion (across 139 deals) in India-based companies during the quarter ended September 2023. 1,261 deals were recorded of more than USD 46 billion of Private Equity (PE) – Venture Capitalist (VC) investments in 2022.
Thus, the utilization of equity funds is driving the mutual fund assets market demand of the segment.
Based on the Investment Strategy :
The investment strategy segment is categorized into equity strategy, fixed income strategy, multi-asset/balanced strategy, sustainable strategy, market timing strategy, buy and hold strategy, and others. In 2023, the equity strategy segment accounted for the highest market share of 41.31% in the overall mutual fund assets market. The mutual fund's equity strategy is a detailed plan outlining how the fund will purchase stocks in order to meet its goals. Clearly defining the investment objective, whether it be income generation, capital appreciation, or a balanced approach is the initial step in the strategy. Furthermore, the strategy defines the investment style of the fund, indicating whether it will prioritize growth value. The strategy is further shaped by decisions about geographic emphasis, sector and market capitalization focus, and active vs passive management.
For instance,
- In November 2023, HSBC Asset Management announced the sixth vintage of the Vision Private Equity strategy.
Thus these factors are boosting the growth of the segment.
Moreover, the multi-asset/balanced strategy segment is expected to grow at the fastest CAGR over the forecast period in the mutual fund assets market. To balance risk and return, a multi-asset strategy entails investing across a variety of asset classes. This strategy includes a variety of investment types, including stocks, bonds, real estate, and commodities, in an effort to create a well-balanced portfolio.
By increasing diversification, the strategy aims to lessen the negative effect of poor results in one class on the portfolio. Multi assets strategies aim to provide more stability and consistency in performance by combining a variety of assets with distant risk-return profiles.
For instance, in January 2024, Bandhan Mutual Fund launches the Bandhan Multi Asset Allocation Fund.
Thus, the aforementioned developments are boosting the trends of the segment.
Based on the End-User Industry :
The end-user industry segment is categorized into banks, financial advisors, direct sellers, and others. In 2023, the banks segment accounted for the highest market share in the overall mutual fund assets market. Banks are essential to the distribution of assets in mutual funds because they serve as middlemen and make investment easier for investors. Banks provide investors with a convenient platform to find, buy, and manage mutual fund holdings through their vast branch networks. They act as channels for distribution offering clients a selection of mutual fund choices that are tailored to satisfy various investment requirements.
For instance,
- In January 2024, SBI Mutual Fund announced the launch of the SBI Nifty50 Equal Weight Index Fund, an open-ended index fund scheme that seeks to generate returns that, before expenses, correspond to the total return of the securities as represented by the underlying index.
Thus, the use of banks for mutual funds is boosting the trends of the segment.
Moreover, the direct seller segment is expected to grow at the fastest CAGR over the forecast period in the mutual fund assets market. A platform or organization that allows investors to buy mutual fund assets directly from the assets management company, avoiding more conventional middlemen such as brokers or distributors, is known as a direct mutual fund seller. Online platforms are frequently offered by direct seller, enabling investors to easily research, choose and purchase mutual funds. Thus, these factors are boosting the trends of the segment.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2023, North America accounted for the highest market share of 36.44% valued at USD 223.13 Billion in 2023, it is expected to reach USD 477.68 Billion in 2031. In North America, the U.S. accounted for the highest market share of 66.27% during the base year of 2023. As per the mutual fund assets market analysis, the mutual fund sector in the region such as America and Canada is well-established and mature. Robust financial infrastructure, a wide range of investment options, and an individual investment culture are some factors contributing to North America's growth.
For instance,
- According to the UN Environment program: finance initiative, stated that UNEP FI carries out its activities in North America through the North American Working Group in Canada and the United States. The Group is working to advance the adoption and integration of sustainability in the financial sector in North America through working with signatory members to address region-specific sustainability issues.
Thus, the aforementioned factors are propelling the trends of the market in this region.
Furthermore, the Asia Pacific region is expected to witness significant growth over the forecast period, growing at a CAGR of 5.5% during the forecast year. Numerous factors such as strong economic development, rising income levels, and growing public awareness of investment opportunities are driving the mutual fund assets market growth.
The development of these industries across the Asia Pacific is expected to influence the mutual fund assets market trends over the estimated period.
Top Key Players & Market Share Insights :
The Mutual fund assets market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The global mutual fund assets industry is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
Recent Industry Developments :
- In January 2024, Old Bridge Mutual Fund has recently introduced its first equity-ended scheme.
Key Questions Answered in the Report
What was the market size of the Mutual fund assets market in 2023? +
In 2023, the market size of Mutual fund assets was USD 612.32 Billion.
What will be the potential market valuation for the Mutual fund assets market by 2031? +
In 2031, the market size of Mutual fund assets will be expected to reach USD 1,246.22 Billion.
What are the key factors driving the growth of the Mutual fund assets market? +
Rise in awareness about the benefits of mutual funds.
What is the dominating segment in the Mutual fund assets market for type industry? +
In 2023, the equity fund segment accounted for the highest market share of in the overall Mutual fund assets market.
Based on current market trends and future predictions, which geographical region is the dominating region in the Mutual fund assets market? +
North America accounted for the highest market share in the overall Mutual fund assets market.
