Market Trends of US Mutual Funds Industry
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. For many large US firms, more than 40% of their revenues come from outside the United States. In recent times, Many Mutual Funds' investments have been routed through the SIP or STP due to economic slowdown predictions by several AUMs for the next couple of months.
Growing Personal Finance Sector is Driving the Market
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. For example, the travel, tourism, restaurants, and entertainment industries are down by 70% to 90% year-over-year, while cross-border transactions are down 50%. On the other hand, companies report 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 how service providers 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 value of an investment in fintech companies worldwide reached more than USD 225.7 billion in 2021. The Americas were the region attracting the most investments in the sector, accounting for nearly 80% of the total.
