Mutual Fund Assets Market Size & Share 2023 to 2032
Market Size by Investment Strategy (Equity Strategy, Fixed Income Strategy, Multi Asset/Balanced Strategy, Sustainable Strategy, Money Market Strategy, Others), Distribution Channel, Type, Investor Type & Global Forecast.
Report ID: GMI6592
|
Published Date: August 2023
|
Report Format: PDF
Download Free PDF
Authors:
Preeti Wadhwani, Aishvarya Ambekar
Mutual Fund Assets Market Size
Mutual Fund Assets Market size was valued at USD 513.3 billion in 2022 and is estimated to register a CAGR of over 8.5% between 2023 and 2032. A significant growth driver for the market is the appeal of diversification. Mutual funds pool investments from multiple individuals, enabling them to invest in assets such as stocks, bonds, and commodities. This diversification helps in managing risks, reducing the impacts of poor performance in any single asset. Investors are attracted to mutual funds for this risk management aspect as it offers protection against market volatility and potential losses.
Mutual Fund Assets Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Dividend reinvestment is boosting mutual fund assets market growth. In dividend reinvestment, the investors choose to reinvest dividends earned from their mutual fund holdings, thus compounding their investments over time. This accelerates asset growth, attracting both individual & institutional investors seeking long-term wealth accumulation. Dividend reinvestment enhances the appeal of mutual funds as a wealth-building tool, contributing to market expansion.
High expense ratios and sales charges can impede the growth of the mutual fund assets market. Investors are increasingly cost-conscious, and high fees can erode returns over time. These charges reduce the appeal of mutual funds, especially when compared to lower-cost alternatives such as Exchange-traded Funds (ETFs). Such high fees deter new investments and may prompt the existing investors to seek more cost-effective options, hindering the overall market demand.
COVID-19 Impact
The COVID-19 pandemic had significant impacts on the mutual fund assets market. The volatility and uncertainty caused by the crisis led to fluctuations in fund performance and investor sentiments. The economic downturn affected various sectors and industries, influencing the composition & value of mutual fund portfolios. The post-pandemic period has seen a gradual recovery in the market. As economies reopened, investor confidence began to improve. This led to an influx of capital into mutual funds, driving market growth & performance.
Mutual Fund Assets Market Trends
The growth of Assets Under Management (AUM) is a prominent trend in the mutual fund assets industry. Several investors are entrusting their capital to mutual funds, contributing to the expansion of AUM. This trend indicates investor confidence in the fund industry's ability to deliver returns and manage risks. The increased AUM not only reflects market growth but also enables funds to achieve economies of scale, potentially leading to cost efficiencies and wider investment offerings.
Mutual Fund Assets Market Analysis
The mutual fund assets market from equity strategy segment dominated around USD 124.1 billion revenue in 2022. The appeal of capital appreciation is accelerating the popularity of the equity strategy within the market. Investors are drawn to equity-focused mutual funds owing to the potential of increased investments over time as the underlying stocks grow in value. This potential for higher returns compared to other asset classes makes equity funds a favored choice among those seeking long-term wealth accumulation and financial growth.
Equity strategies facilitate portfolio diversification, mitigating vulnerability to individual company-related risks and augmenting the comprehensive risk-return framework. They yield revenue from dividends as numerous companies allocate profits to their shareholders.
The open ended segment held over 82.2% of the mutual fund assets market share in 2022, due to the emergence of new open-ended technology funds. These funds cater to investors seeking exposure to the technology sector's growth potential. For instance, in August 2023, HDFC Mutual Fund introduced the HDFC Technology Fund, an open-ended equity scheme that directs investments in technology & technology-related enterprises.
The performance of the scheme will be evaluated against the S&P BSE Teck Index. Its core objective is to achieve long-term capital growth by primarily investing in equities and equity-related instruments of companies within the technology & technology-related sectors. This focus on a specific sector allows investors to align their portfolios with market trends, driving inflows and contributing to industry expansion.
North America mutual fund assets market accounted for 40% of revenue share in 2022. The investment banks based in the U.S. are expanding the regional market’s geographical landscape by acquiring asset management companies to strengthen the fund management and the distribution platform across channels.
For instance, in August 2021, The Goldman Sachs Group, Inc. reached an agreement to purchase NN Investment Partners from NN Group N.V. for about USD 1,682.4 million. NN Investment Partners provides equity and fixed income products with strong Environmental, Social, and Governance (ESG) integration throughout its business. The skills of NN Investment Partners improved fund management and distribution system for both institutional and retail channels of The Goldman.
Mutual Fund Assets Market Share
The major companies operating in the mutual fund assets market are
Mutual Fund Assets Industry News:
This mutual fund assets market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032 for the following segments:
Click here to Buy Section of this Report
Market, By Investment Strategy
Market, By Distribution Channel
Market, By Type
Market, By Investor Type
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →