| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 22.89 Trillion |
| Market Size (2030) | USD 30.64 Trillion |
| CAGR (2025 - 2030) | 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Mutual Fund Market Analysis
The US Mutual Funds Industry in terms of assets under management value is expected to grow from USD 22.89 trillion in 2025 to USD 30.64 trillion by 2030, at a CAGR of 6% during the forecast period (2025-2030).
In the United States, the mutual funds market stands as a pivotal element of the financial landscape, offering investors numerous avenues for wealth accumulation. Over the years, this market has adeptly navigated shifts in market dynamics, regulatory changes, and the evolving preferences of investors. U.S. mutual funds span a broad spectrum of asset classes, including stocks, bonds, and a variety of market caps, sectors, and investment strategies. Whether they are actively or passively managed, these funds aim for both short- and long-term returns. They prominently feature players from diverse sectors such as automotive, technology, healthcare, and the internet, enabling investments in industry giants like Apple, Amazon, and Microsoft. Notably, over 40% of revenues for many of these significant corporations originate from international markets. Recently, in response to anticipated economic slowdowns, many mutual funds have shifted their investment strategies towards Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs).
Boasting over USD 25 trillion in total net assets, the US mutual fund industry continues to reign as the world's largest. A significant portion of these assets is concentrated in long-term mutual funds, with equity funds alone accounting for over half. Following closely, money market funds represent more than 20% of the net assets, while bond and hybrid funds make up the remainder.
Investor demand for mutual funds in the US is shaped by the funds' effectiveness in helping achieve financial goals. For instance, US households turn to equity, bond, and hybrid mutual funds for long-term objectives like retirement planning, emergency savings, and education funding. Additionally, US households, businesses, and institutional investors favor money market funds for cash management, valuing their liquidity and access to short-term market yields.
The demand for mutual funds is influenced by the investor profile. Retail investors, primarily households, dominate the US mutual fund landscape, holding the lion's share of total net assets. Their stake in long-term mutual funds is even more pronounced. While retail investors maintain a notable presence in money market funds, it's a smaller fraction of their overall mutual fund portfolio. In contrast, institutional investors, including nonfinancial businesses, financial entities, and nonprofits, command only a modest share of the mutual fund net assets
US Mutual Fund Market Trends
Shift Toward Passive Investing
Over the past decade, the US mutual funds market has been reshaped by the rise of passive investing. Heightened cost sensitivity, the consistent underperformance of many active funds against benchmarks, and evolving investor preferences drive this trend. Index funds, a subset of passive mutual funds, enjoy significantly lower expense ratios than their actively managed peers. This cost advantage stems from passive funds' strategy of tracking designated indices, like the S&P 500. The growing allure of passive funds has led active managers to reduce their fees, signaling a broader market shift towards cost-effective investment solutions. Index funds, tracking benchmarks like the S&P 500 or NASDAQ, have cemented their position as staples for both retail and institutional investors. Their strengths lie in broad market exposure, transparency, and affordability.
Simultaneously, exchange-traded funds (ETFs), another variant of passive management, are experiencing even more rapid expansion. While ETFs and mutual funds operate similarly, ETFs offer distinct advantages: intraday trading, tax efficiency, and generally lower fees, all of which amplify the momentum toward passive investing. The migration from actively managed mutual funds to passive instruments, particularly index funds and ETFs, highlights a significant market transformation. The appeal of reduced fees essentially drives this transition, the frequent underperformance of active funds relative to benchmarks, and a growing investor preference for simplicity and cost-effectiveness. As competition heats up, mutual funds, especially the active ones, face increasing pressure to lower their fees. Today's cost-conscious investors are particularly drawn to the reduced expense ratios of passive funds.
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Robo-Advisors and Automated Platforms Is Driving the Market
In the US mutual fund industry, robo-advisors and automated platforms are reshaping how investors access and manage their portfolios. These platforms leverage technology to offer low-cost, algorithm-driven investment advice, reshaping investor behavior and influencing mutual fund trends. By lowering minimum investment requirements, robo-advisors broaden access to mutual funds, especially for retail investors with smaller portfolios. This accessibility allows individuals who might not have the capital for traditional financial advisors to engage in the market. Building diversified portfolios, robo-advisors predominantly utilize passive mutual funds or ETFs. They allocate assets based on algorithms that consider risk tolerance, investment goals, and time horizons, mirroring the industry's broader shift toward passive investing.
Furthermore, robo-advisors automatically rebalance portfolios and optimize for tax efficiency using algorithms. Services like these, once exclusive to high-net-worth individuals via human advisors, are now accessible to retail investors at a fraction of the cost. Automated rebalancing keeps portfolios aligned with investor objectives, while tax-loss harvesting can reduce tax liabilities, enhancing long-term returns. Younger, tech-savvy generations, especially millennials, are gravitating toward robo-advisors. These individuals, comfortable with digital platforms, prefer not to seek traditional financial advisors. They value a straightforward, user-friendly interface for managing investments online or via mobile apps. Robo-advisors empower investors to set specific financial goals—be it retirement, education savings, or home purchases. The algorithms then curate mutual fund portfolios tailored to each investor's time horizon, risk tolerance, and financial objectives.
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US Mutual Fund Industry Overview
The US mutual fund industry is consolidated, with a handful of significant firms overseeing a dominant share of total assets under management (AUM). While the landscape boasts thousands of mutual funds and a multitude of asset managers, a select few wield considerable influence over the market. Notably, the top 10 asset managers command over 80% of mutual fund assets in the US. This underscores the pronounced dominance of a limited number of firms, especially in an industry where scale translates to enhanced cost efficiency and distribution advantages. Industry titans such as Vanguard, BlackRock (iShares), and Fidelity stand out, collectively managing a substantial chunk of the nation's mutual fund and ETF assets.
US Mutual Fund Market Leaders
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BlackRock Asset Management
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The Vanguard Group
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State Street Global Advisors
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Fidelity Investments
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J.P. Morgan Asset Management
- *Disclaimer: Major Players sorted in no particular order
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US Mutual Fund Market News
- September 2024: BlackRock and Partners Group joined forces to introduce a groundbreaking multi-private markets model. This innovative solution aims to revolutionize retail investors' access to alternative investments. It will enable access to private equity, private credit, and tangible assets, all within a single portfolio. Such an offering is unprecedented in the U.S. wealth market. Managed collaboratively by BlackRock and Partners Group, this pioneering solution equips advisors to present a portfolio of diversified alternatives.
- February 2024: State Street Corporation acquired CF Global Trading. This global firm specializes in outsourced trading on an agency basis across various asset classes, including equities, listed derivatives, and fixed income.
US Mutual Fund Industry Segmentation
A mutual fund is an investment vehicle that pools money from multiple investors to create a diversified portfolio of various securities. After constructing this portfolio, investors receive mutual fund units proportional to their investment amount. The US mutual funds industry is segmented by fund type, investor type, and distribution channel. By fund type, the market is segmented into equity, bond, hybrid, and money market. By investor type, the market is segmented into households and institutions. By distribution channel, the market is segmented into banks, financial advisors/brokers, and direct sellers. The report offers market size and forecasts for the United States mutual funds industry in value (USD) for all the above segments.
| By Fund Type | Equity |
| Bond | |
| Hybrid | |
| Money Market | |
| By Investor Type | Households |
| Institutions | |
| By Distribution Channel | Employee Sponsored Retirement Plans |
| Direct (Fund Companies, Discount Brokers) | |
| Sales Force Channel (Investment Advisors, Full-Service Brokers, Banks etc.)) |
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US Mutual Funds Industry Market Research Faqs
How big is the US Mutual Funds Industry?
The US Mutual Funds Industry size is expected to reach USD 22.89 trillion in 2025 and grow at a CAGR of 6% to reach USD 30.64 trillion by 2030.
What is the current US Mutual Funds Industry size?
In 2025, the US Mutual Funds Industry size is expected to reach USD 22.89 trillion.
Who are the key players in US Mutual Funds Industry?
BlackRock Asset Management, The Vanguard Group, State Street Global Advisors, Fidelity Investments and J.P. Morgan Asset Management are the major companies operating in the US Mutual Funds Industry.
What years does this US Mutual Funds Industry cover, and what was the market size in 2024?
In 2024, the US Mutual Funds Industry size was estimated at USD 21.52 trillion. The report covers the US Mutual Funds Industry historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the US Mutual Funds Industry size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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US Mutual Funds Industry Industry Report
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