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.
The surge in investment toward mutual fund, which enables small & large fund savers to participate in investment plans has become a major growth factor in 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. Furthermore, the rise of digital platforms and robo-advisors has made investing in mutual funds more accessible and easier for investors. These technological innovations allow for automated portfolio management and better access to a variety of fund options, fueling the growth of the mutual fund assets market.
However, the high volatile capital market environment and high expense ratio & sales charges are some of the factors that limit the mutual fund assets market growth. In addition, limited knowledge or a lack of financial literacy among investors may prevent some individuals from taking full advantage of mutual fund opportunities, impeding the market growth.
Application Insight
Mutual fund assets are spread across various categories like equity, bond, hybrid, and money market funds. Equity funds dominate due to their focus on long-term capital growth, attracting risk-tolerant investors. Bond funds appeal to conservative investors seeking stability and steady income. Hybrid funds, combining stocks and bonds, suit those with moderate risk tolerance. As market conditions and investor preferences evolve, mutual funds are becoming increasingly important in the investment landscape. The rising demand for ESG funds, which align with environmental, social, and governance values, and the growth of ETFs further diversify the market. Investors appreciate mutual funds for their professional management, diversification, and accessibility, driving their continued growth and prominence as a key investment vehicle.
Conversely, the mutual fund assets market is expected to create significant opportunities for investors, financial professionals, and businesses alike. Mutual funds offer investors an easy way to diversify their portfolios, reducing risk by providing access to a variety of asset classes, sectors, and geographic regions. This is particularly appealing to individual investors who may lack the time or expertise to select individual stocks or bonds. In addition, the increase in the demand for ESG (Environmental, Social, and Governance) funds, has significantly impacted the mutual fund assets market, as investors become more conscious of the social and environmental implications of their investments. Furthermore, robo-advisors are gaining popularity, offering automated investment solutions that cater to individuals looking for low-cost, diversified portfolios based on their risk tolerance and financial goals. These factors are expected to offer remunerative opportunities for market growth.
For instance, on October 18, 2024, BlackRock partnered with Jio Financial Services to enter India's asset management sector. The partnership has received in-principle approval from SEBI, with plans to launch a mutual fund under this collaboration. The joint venture, named Jio BlackRock Investment Advisers Private Limited, focused on investment advisory services, wealth management, and brokerage operations in India, pending further regulatory approvals. This move signals BlackRock's expansion into the Indian market, leveraging Jio Financial Services' local presence.
Moreover, the surge in use of target-date funds are becoming increasingly popular, especially in retirement accounts, as they automatically adjust the asset mix to become more conservative as the target date approaches. In addition, the expansion of international and emerging market funds presents opportunities to tap into high-growth regions, while technology and fintech innovations are transforming the way mutual funds are managed, making investing more accessible and efficient. Furthermore, customized mutual fund solutions, designed to meet the specific needs of investors, and the ability to capitalize on global economic trends, further enhance the market's potential. In addition, the upsurge in teh adoption of alternative investment strategies, such as real estate or commodities-focused mutual funds, are gaining traction as investors look beyond traditional asset classes. These factors are expected to offer lucrative mutual fund assets market opportunity for growth.
For instance, on March 13, 2025, Axis Mutual Fund launched the Axis Nifty500 Momentum 50 ETF, an open-ended exchange-traded fund that tracks the Nifty500 Momentum 50 TRI. The fund aims to provide returns that replicate the index's performance, subject to tracking errors. This ETF is suitable for investors seeking long-term wealth creation by investing in securities of the Nifty500 Momentum 50 Index. The NFO is open until March 18, 2025, with a minimum investment of ₹500. The fund is managed by Mr. Karthik Kumar, and its benchmark is the Nifty500 Momentum 50 TRI.
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.
Type Insights
In the mutual fund assets market, different types of investment funds address various investor requirements. Investment funds encompass equity funds, bond funds, and hybrid funds. Equity funds mainly focus on stocks, presenting the possibility of higher returns, although they also involve greater volatility and risk. In contrast, bond funds invest in fixed-income securities, delivering more stability and consistent returns, yet they offer lower growth potential. Hybrid funds integrate both stocks and bonds, providing a balanced approach to risk and return for more cautious investors.
Effective portfolio management is key in managing these assets. Portfolio managers implement techniques to diversify investments among various asset categories, minimizing risk while maximizing returns. This expert supervision guarantees that the fund corresponds with the investor’s risk appetite and financial objectives, adjusting to evolving market circumstances.
The ETF market has introduced more flexibility within the mutual fund space. ETFs, which trade like stocks on exchanges, provide lower expense ratios, greater liquidity, and real-time pricing compared to traditional mutual funds. While mutual funds still dominate for long-term, actively managed investments, the growing popularity of ETFs is shifting investor preferences towards lower-cost, flexible options. Ultimately, the mutual fund assets market continues to evolve with these varied investment types.
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.
Segment Review
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 mutual fund assets market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Competitive Analysis
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 mutual fund assets industry.
Recent Product Launches in the Market
On March 19, 2025, ICICI Prudential Mutual Fund launched the ICICI Prudential Nifty EV & New Age Automotive ETF and the ICICI Prudential Nifty EV & New Age Automotive ETF FOF. The ETF's new fund offer (NFO) opened on March 21 and closed on April 2, while the FOF's NFO opened on March 28 and closed on April 10. These funds provided investors with exposure to India's expanding EV and new-age automotive sector, including electric vehicles, battery manufacturers, and automotive technology providers.
On March 17, 2025, Chennai-based Unifi Asset Management, a new entrant in the mutual fund space, planned to have only three funds for the next five years. Chairman K. Sarath Reddy emphasized doing fewer things well for higher success. They launched and closed their first fund, Unifi Dynamic Asset Allocation Fund, focusing on fixed income. They planned to launch a flexi cap fund in May and a hybrid fund in June. Despite market volatility, Reddy believed it was the right time to launch due to depressed valuations. Their target segment was the mass affluent, those earning and paying significant taxes but not yet able to invest large sums in single portfolio management schemes.
On March 19, 2025, Quant Mutual Fund launched the Quant Arbitrage Fund, an open-ended scheme that seeks to capitalize on arbitrage opportunities in equity markets. The NFO is open for subscription until April 1, and the fund will primarily invest in arbitrage opportunities, along with some exposure to debt and money market instruments. It is benchmarked against the Nifty 50 Arbitrage TRI. The minimum investment is ₹5,000, making it a low-risk option for short to medium-term returns.
On March 17, 2025, Tata Mutual Fund has launched the Tata BSE Quality Index Fund, an open-ended scheme designed to replicate the performance of the BSE Quality Total Return Index (TRI). The fund aims to provide long-term capital appreciation by tracking the index's total returns, subject to tracking error. The NFO is open from March 17 to March 28, 2025, with a minimum investment of ₹5,000. It offers Direct and Regular plans, with options for Growth and Income Distribution cum Capital Withdrawal. The fund will be managed by Mr. Kapil Menon, and its benchmark will be the BSE Quality Total Return Index (TRI).
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 industry 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 growth of the market during mutual fund assets market forecast period.
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 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 mutual fund assets 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.
By Region
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.
Mutual Fund Assets Market Report Highlights
| Aspects | Details |
 By FUND TYPE |
|
 By DISTRIBUTION CHANNEL |
|
 By INVESTOR TYPE |
|
 By Region |
|
 Key Market Players | BNP PARIBAS MUTUAL FUND, THE VANGUARD GROUP, INC., BLACKROCK, INC., MORGAN STANLEY, CITIGROUP INC., JPMORGAN CHASE & CO., GOLDMAN SACHS, PIMCO, CAPITAL GROUP, STATE STREET CORPORATION |
Analyst Review
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.
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