Mutual Fund Assets Market Outlook - 2027
The global mutual fund assets market size was valued at $54.93 trillion in 2019, and is projected to reach $101.2 trillion by 2027, growing at a CAGR of 11.3% from 2020 to 2027. A mutual fund is one of the most preferred investment alternatives for small investors in the market. In addition, it offers an opportunity to invest in a professionally managed & diversified portfolio at a relatively low cost. Moreover, it pools money from several investors and invests the money in securities such as stocks, bonds, short-term debt, and others. Furthermore, each share represents an investor’s ownership in the fund and the income generated from the investments.
Surge in investment toward mutual fund, which enables small & large fund savers to participate in investment plans is becoming a major growth factor to the market. In addition, advanced portfolio management services, convenience & fair pricing in terms of investments, and implementation of digitalized technologies propel the mutual fund assets market growth. However, highly volatile capital market environment and high expense ratio & sales charges are some of the factors that limit the market growth. Furthermore, developing economies offer significant opportunities for mutual fund providers to expand & develop their existing portfolio with affordable & better returns on investments. In addition, increased support and new initiatives by governments toward the mutual fund assets market are expected to provide lucrative opportunities during the forecast period.
The equity funds segment dominated the mutual fund assets market in 2019 and is projected to maintain its dominance during the forecast period. This is attributed to the fact that investors invest primarily in individual stocks of publicly traded companies. Moreover, factors such as diversification, systematic investments & withdrawals, and professionally money management with analyzing current & potential holdings for stock funds are driving the growth of this segment during the forecast period.
The report focuses on the growth prospects, restraints, and trends of the mutual fund assets market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the mutual fund assets market.
The mutual fund asset market is segmented on the basis of fund type, distribution channel, investor type, and region. In terms of fund type, it is segmented into equity funds, bond funds, money market funds, and hybrid & other funds. On the basis of distribution channel, it is classified into banks, financial advisors/brokers, direct sellers, and others. By investor type, it is divided into institutional and individual. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyses the profiles of key players operating in the market, including BlackRock, Inc., BNP Paribas Mutual Fund, Capital Group, Citigroup Inc., Goldman Sachs, JPMorgan Chase & Co., Morgan Stanley, PIMCO, State Street Corporation, and The Vanguard Group, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
By Distribution Channel
Direct Sellers is projected as one of the most lucrative segments.
COVID-19 impact analysis
COVID-19 pandemic has a moderate impact on the mutual fund assets market, owing to increased cases of corporate defaults as the cash flow position has been hampered tremendously. However, as lockdown in several regions has severely impacted the movement of consumers and disruption of businesses across the globe, customers are availing offers of mutual funds via online platforms. This, in turn, has become one of the major growth factors for the mutual fund assets market during the pandemic situation.
Top impacting factors
Implementation of digitalized technologies
The mutual fund industry has become the fastest adopter of technologies such as robo-advisors, artificial intelligence, blockchain, cloud computing, Big Data & analytics, and others. In addition, mutual fund companies implement these technologies to provide easy access to complex services, centralize processes to create efficiencies, and reduce cost & risk for the mutual fund marketplace. This has helped to achieve customer loyalty by installing more integrated and value-added services. Therefore, to provide convenient & efficiency services and reduce operational cost, there is increased deployment and implementation of technologies, which are driving the market growth.
By Fund Type
Equity Funds accounted for the largest market share in 2019.
Increased investment in mutual funds
Increase in emphasis on domestic savings, rise in disposable income, and mobilization & allocation of the income toward profitable investments are some of the factors that propel the growth of investments in mutual funds. Moreover, it enables small & large fund savers globally to participate in investment plans and derive the benefits of the capital market growth. Furthermore, the mutual fund industry has witnessed massive expansion & standardization in terms of products & services offered, increased proliferation of a large number of private sector funds, and regulatory mechanism, which consequently fueled the market growth.
Surge in government support & initiatives for the mutual fund assets market
Governments, regulatory bodies, and other authorities across several countries are expected to boost and expand their existing mutual funds industry. In addition, the regulatory bodies continue to look for enhancing the expansion & penetration by executing tie-ups with e-wallets, e-commerce distribution, and other such platforms in the market. Furthermore, the distributors of mutual funds in several regions play an active role and are largely encouraged by the respective country’s government. Therefore, this factor is accelerating the revenue growth of mutual fund providers by enhancing quality & depth of the engagement with channel partners. Furthermore, increased government support and advanced initiatives toward mutual funds are expected to provide lucrative opportunities to the market in the coming years.
Asia-Pacific would exhibit the highest CAGR of 13.7% during 2020-2027.
Key benefits for stakeholders
- The study provides in-depth analysis of the global mutual fund assets market share along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- An extensive analysis of the key segments of the industry helps to understand the global mutual fund assets market trends.
- The quantitative analysis of the global mutual fund assets market from 2020 to 2027 is provided to determine the market potential.
Key market segments
By Fund Type
- Equity Funds
- Bond Funds
- Money Market Funds
- Hybrid & Other Funds
By Distribution Channel
- Financial Advisors/Brokers
- Direct Sellers
By Investor Type
- North America
- Rest of Europe
- South Korea
- Hong Kong
- Rest of Asia-Pacific
- Latin America
- Middle East
Key market players
- BlackRock, Inc.
- BNP Paribas Mutual Fund
- Capital Group
- Citigroup Inc.
- Goldman Sachs
- JPMorgan Chase & Co.
- Morgan Stanley
- State Street Corporation
- The Vanguard Group, Inc.
Mutual Fund Assets Market Report Highlights
By FUND TYPE
By DISTRIBUTION CHANNEL
By INVESTOR TYPE
Key Market Players
BNP PARIBAS MUTUAL FUND, THE VANGUARD GROUP, INC., STATE STREET CORPORATION, PIMCO, CAPITAL GROUP, MORGAN STANLEY, JPMORGAN CHASE & CO., BLACKROCK, INC., GOLDMAN SACHS, CITIGROUP INC.
Mutual fund providers are looking forward to expanding their existing product portfolio and providing customized funding options for their investors. In addition, due to the COVID-19 outbreak, the mutual fund assets market has heightened volatility and led many investors to review their investments. Moreover, investors have largely switched to investment products protecting them from downside risk. However, a considerable number of companies perceive that they have minimum mutual funds exposure. This scenario is changing, and 2019 has witnessed an increase in sale of mutual funds instruments, owing to higher awareness of mutual funds, increase in disposable income, and implementation of technologies by key players, which led to innovation & new trends in the mutual funds industry.
The mutual fund assets market is fragmented with the presence of regional vendors. Some of the key vendors are JPMorgan Chase & Co., BlackRock, Inc., and BNP Paribas Mutual Fund. North America and Europe dominated the mutual fund assets market, in terms of revenue in 2019, and are expected to retain dominance over the forecast period. However, Asia-Pacific is expected to experience significant growth in the future, owing to emerging economies and rise in presence of asset management companies providing advanced portfolio management services in the region. Furthermore, the mutual fund assets market is particularly brisk in countries, such as India, China, Japan, Australia, Indonesia, Korea, Hong Kong, Taiwan, New Zealand, and Singapore, with high GDP growth and rise in per capita income. However, huge gap between customer expectations and services delivered is one of the biggest challenging factors for the mutual fund assets market in the region. Some of the key players profiled in the report include Citigroup Inc., Goldman Sachs, Morgan Stanley, PIMCO, State Street Corporation, and The Vanguard Group, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.