US Mutual Funds Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The US Mutual Funds Industry is segmented by Fund Type, Investor Type, and Channel of Purchase.

Market Snapshot

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Study Period: 2017- 2026
Base Year: 2020
CAGR: 3.1 %

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Market Overview

With a whopping USD 21.3 trillion in total net assets, the US mutual fund industry remained the largest in the world in 2019. The United States accounted for almost 40% of the global mutual fund market (valued at USD 54.93 trillion in 2019).

The United States accounted for a quarter of the global number of mutual funds in 2020. To understand the massive size of the US market, it can be said that the United States’ market holds almost a quarter of all funds when compared globally.

As of 2019, Blackrock had an approximate value of USD 7 trillion worth of assets under management, and Vanguard was next at USD 5.6 trillion and Charles Schwab at USD 3.7 trillion.

The majority of US mutual fund net assets at year-end 2020 were in long-term mutual funds, with equity funds alone making up 55.3 % of the US mutual fund net assets. Bond mutual funds were the second-largest category, with 22% of net assets. Money market funds (14.3%) and hybrid funds (8.4%) held the remainder.

As of 2018, there were a total of 8,094 registered mutual funds, while 7,945 in April 2019. 

Scope of the Report

The US mutual funds industry is segmented by fund type (equity, bond, hybrid, and money market), investor type (households and institutions), and channel of purchase (discount broker/mutual fund supermarket, distributed contribution retirement plan, direct sales from mutual fund companies, and professional financial adviser).

By Fund Type
Equity
Bond
Hybrid
Money Market
By Investor Type
Households
Institutions
By Channel of Purchase
Discount Broker/Mutual Fund Supermarket
Distributed Contribution Retirement Plan
Direct Sales from Mutual Fund Companies
Professional Financial Adviser

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Key Market Trends

US Mutual Funds Market Scenario

The US mutual funds cover a wide range of asset classes, such as stocks and bonds, as well as market caps, sectors, industries, and styles. The funds can be passively or actively managed to achieve short- and long-term returns. The US funds comprise many large companies in various industries like automobile, technology, healthcare, and the internet. Such funds give a chance to bet on companies like Apple, Amazon, Mastercard, Visa, Alphabet, Microsoft, and Facebook.

The US shares grew 186%, compared with 50% for the rest of the world. In 2019 alone, as of December 27, the US shares rose by 29% vs. 19% for the rest of the world. These numbers show why the United States is at the epitome of the mutual fund segment globally.

For many large US firms, more than 40% of their revenues come from outside the United States. In recent times, Many Mutual Funds’ investments routed through the SIP or STP due to economic slowdown predictions by several AUMs for the next couple of months.

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Growing Personal Finance Sector

The personal finance market segment contains automated investment services that enable private investors to align their investment strategy or portfolio using automated recommendations.

The fintech sector’s been hurt by the sharp decline in overall transactions and payments volumes. The travel, tourism, restaurants, and entertainment industries, for example, are down by 70% to 90% year-over-year, while cross-border transactions are down 50%. On the other hand, companies are reporting payment volume increase in everyday spending categories, like food and grocery stores. Sharp acceleration and shift to e-commerce have been observed as people buy and order items from home.

The rise of financial technology (fintech) has transformed the way in which service providers are able to engage with their customers. Fintech has simplified the complicated personal finance industry, making it far more accessible for the average consumer.

Companies that use robotic process automation for banking tasks see a return on investment of up to 100% within three to eight months.

The United States accounted for over 70% of global fintech funding, with USD 76 billion in investment in 2020.

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Competitive Landscape

The US mutual funds industry is highly competitive, with the presence of major international players. The US mutual funds industry presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, the US mutual funds industry has an observable level of consolidation.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

      1. 4.1.1 Overview of the US Current Economic and Financial Sector

      2. 4.1.2 Overview of the US Financial Market and Investment Funds Industry Scenario

    2. 4.2 A Brief on Regulatory Environment

      1. 4.2.1 Impact of the US SEC Regulatory Reforms on the Mutual Funds Industry

      2. 4.2.2 Review and Commentary on the US Financial Investments Assets Market after the Economic Crisis of 2008

    3. 4.3 Performance of Mutual Funds in the United States

      1. 4.3.1 Insights into Entry and Exits of Mutual Funds of the United States

      2. 4.3.2 Insights into Various Types of Fees and Expenses of funds in the Mutual Fund Industry

      3. 4.3.3 Insights into Operating Cost and Revenue Generated

    4. 4.4 Technological Innovations Shaping the Industry

    5. 4.5 Market Drivers

    6. 4.6 Market Restraints

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers/Consumers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION AND ANALYSIS

    1. 5.1 By Fund Type

      1. 5.1.1 Equity

      2. 5.1.2 Bond

      3. 5.1.3 Hybrid

      4. 5.1.4 Money Market

    2. 5.2 By Investor Type

      1. 5.2.1 Households

      2. 5.2.2 Institutions

    3. 5.3 By Channel of Purchase

      1. 5.3.1 Discount Broker/Mutual Fund Supermarket

      2. 5.3.2 Distributed Contribution Retirement Plan

      3. 5.3.3 Direct Sales from Mutual Fund Companies

      4. 5.3.4 Professional Financial Adviser

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Competition Overview

    2. 6.2 Company Profiles

      1. 6.2.1 BlackRock

      2. 6.2.2 The Vanguard Group

      3. 6.2.3 State Street Global Advisors

      4. 6.2.4 Fidelity Investments

      5. 6.2.5 J.P. Morgan Asset Management

      6. 6.2.6 BNY Mellon Investment Management

      7. 6.2.7 PIMCO

      8. 6.2.8 UBS

      9. 6.2.9 Allianz

      10. 6.2.10 Amundi*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

**Subject to Availability

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Frequently Asked Questions

The US Mutual Funds Industry market is studied from 2017 - 2026.

The US Mutual Funds Industry is growing at a CAGR of 3.1% over the next 5 years.

The US Mutual Funds Industry is valued at 54930 Billion USD in 2017.

The US Mutual Funds Industry is valued at 68000 Billion USD in 2026.

BlackRock Asset Management, The Vanguard Group, State Street Global Advisors, Fidelity Investments, J.P. Morgan Asset Management are the major companies operating in US Mutual Funds Industry.

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