Mutual Fund Assets Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Investment Strategy (Equity Strategy, Fixed Income Strategy, Multi Asset/Balanced Strategy, Sustainable Strategy, Money Market Strategy, Others), By Investor Type (Retail, Individual), By Distribution Channel (Direct Sales, Financial Advisor, Broker-Dealer, Banks, Others), By Region, & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 599.44 Billion
CAGR (2026-2031)	7.11%
Fastest Growing Segment	Direct Sales
Largest Market	North America
Market Size (2031)	USD 905.16 Billion

Market Overview

The Global Mutual Fund Assets Market will grow from USD 599.44 Billion in 2025 to USD 905.16 Billion by 2031 at a 7.11% CAGR. Mutual funds are financial vehicles that pool capital from numerous investors to purchase a diversified portfolio of securities including equities, bonds, and money market instruments. The growth of this market is primarily supported by the rising global demand for retirement savings solutions and the increasing financial literacy of retail investors who seek professional asset management. Additionally, the proliferation of digital distribution channels has democratized access to financial markets and significantly broadened the capital base by allowing easier entry for individual participants.

Despite this positive momentum, the sector faces hurdles regarding heightened market volatility and geopolitical tensions which can precipitate asset outflows and reduce net asset values. According to the International Investment Funds Association, worldwide regulated open ended fund assets increased to 80.85 trillion United States dollars at the end of the second quarter of 2025. Regulatory complexities across different jurisdictions also impose compliance costs that hamper cross border distribution efficiency and create operational friction for global asset managers.

Key Market Drivers

The rising popularity of low-cost passive and index-tracking funds is fundamentally reshaping the global market structure as investors increasingly prioritize cost efficiency and broad market exposure. This secular shift has driven massive capital migration into exchange-traded funds (ETFs), positioning them as primary vehicles for wealth accumulation over traditional active strategies. According to the Investment Company Institute, April 2025, in the '2025 Investment Company Fact Book', net issuance of ETF shares surged to a record 1.1 trillion United States dollars in 2024. This data underscores the dominant role of passive strategies in attracting new capital, compelling global asset managers to expand their index-based offerings to capture these sustained inflows.

Simultaneously, the transition from traditional savings to capital market products is accelerating, with investors seeking higher yields in a stabilizing interest rate environment. This trend is evident in the robust inflows into fixed-income categories, where retail participants are locking in returns by moving liquidity from bank deposits to managed funds. According to the European Fund and Asset Management Association, March 2025, in the 'Quarterly Statistical Release N°100', bond funds attracted net inflows of 90 billion Euros in the fourth quarter of 2024. Highlighting the scale of this capital concentration, according to BlackRock, October 2025, in the 'Third Quarter 2025 Earnings Release', the firm's assets under management reached a record 13.46 trillion United States dollars, driven by continued organic growth across its platform.

Download Free Sample Report

Key Market Challenges

Heightened market volatility and geopolitical tensions significantly impede the consistent expansion of the global mutual fund assets market. When geopolitical instability arises, investor sentiment often turns fragile, leading to rapid capital flight from riskier asset classes toward safe-haven equivalents. This risk aversion directly counteracts growth momentum by triggering substantial redemptions and eroding the net asset values of equity and mixed-asset portfolios. Consequently, fund managers face reduced liquidity and increased pressure on performance metrics, which dampens overall market accumulation and creates an unpredictable environment for asset gathering.

The impact of such instability is evident in recent periods where uncertain global conditions reversed capital accumulation trends. According to the Investment Company Institute, in the fourth quarter of 2024, worldwide regulated open-end fund assets decreased by 1.5 percent to 73.86 trillion United States dollars. This contraction illustrates how sudden shifts in the geopolitical and economic landscape can precipitate immediate declines in total assets under management, forcing the industry to contend with shrinking capital bases despite the broader long-term demand for retirement savings and professional management.

Key Market Trends

The evolution of ESG investing is transitioning from broad labeling toward rigorous, standardized impact metrics, driven largely by regulatory frameworks such as the Sustainable Finance Disclosure Regulation (SFDR). This shift compels asset managers to substantiate sustainability claims with verifiable data, effectively consolidating capital into funds that meet strict regulatory classifications for transparency and environmental alignment. By moving beyond superficial branding, the industry is establishing a high-quality segment of compliant strategies that attract institutional mandates and risk-conscious retail capital. According to the European Fund and Asset Management Association, April 2025, in the 'Market Insights: The SFDR fund market' report, net assets of Article 8 funds, which promote environmental or social characteristics, amounted to 9.14 trillion Euros at the end of 2024, highlighting the market's decisive move toward regulated sustainability structures.

Simultaneously, the adoption of blockchain technology for asset tokenization is fundamentally upgrading the operational infrastructure of the global mutual fund market. This technological integration allows for the issuance and settlement of fund units on distributed ledgers, which significantly reduces administrative friction and enables near-instantaneous liquidity for investors. By tokenizing assets, managers can offer fractional ownership and streamline the complex back-office processes associated with traditional transfer agency, thereby lowering costs and broadening distribution to digital-native demographics. Highlighting the scale of this emerging infrastructure, according to Calastone, September 2025, in the 'Asset managers reveal $235bn tokenisation opportunity' report, the value of tokenized fund assets is projected to expand rapidly from a base of 4 billion United States dollars in 2024, signaling a robust trajectory for blockchain integration in asset management.

Segmental Insights

The Direct Sales segment is currently identified as the fastest-growing category in the Global Mutual Fund Assets Market, driven significantly by the widespread adoption of digital investment technologies. This channel enables investors to transact directly with asset management firms, thereby removing the need for intermediaries and eliminating distributor commissions. The resulting reduction in transaction costs and expense ratios makes this route highly attractive to cost-conscious retail investors. Additionally, enhanced financial literacy and the convenience of online portfolio management are accelerating the global shift toward self-directed investment strategies.

Regional Insights

North America maintains a leading position in the global mutual fund assets market, primarily due to its established financial infrastructure and deep capital markets. The region benefits significantly from widespread participation in investment-linked retirement plans, which drives consistent capital inflows. Additionally, the presence of a comprehensive regulatory framework, overseen by bodies like the U.S. Securities and Exchange Commission, fosters high levels of investor confidence and market stability. This combination of structural maturity and regulatory security consolidates North America's status as the dominant region in the global landscape.

Recent Developments

• In March 2025, J.P. Morgan Asset Management expanded its active fund offerings with the launch of the JPMorgan U.S. Research Enhanced Large Cap ETF on the New York Stock Exchange. This new investment vehicle was designed to combine the benefits of active management with the structural advantages of an ETF, utilizing the firm's proprietary research to select established large-cap companies. The strategy aimed to deliver consistent long-term capital appreciation by slightly overweighting high-conviction stocks and underweighting those considered overvalued relative to the benchmark. The launch reflected the asset manager's continued commitment to broadening its suite of active research-enhanced strategies for investors seeking equity exposure.
• In December 2024, Invesco Ltd. launched the Invesco MSCI North America Climate ETF, a new fund designed to help investors manage exposure to greenhouse gas emissions. The product began trading with an initial investment of $2.4 billion from a Finnish pension insurer, setting a record for the funding of a new exchange-traded fund launch. The fund tracks an index constructed to overweight companies with robust emissions reduction targets while underweighting those with higher carbon footprints. This launch highlighted the company's focus on providing thematic investment tools that align with specific environmental, social, and governance criteria for institutional and retail clients.
• In November 2024, State Street Global Advisors announced a strategic relationship with Bridgewater Associates to expand access to core alternative investment strategies. This collaboration involved the two asset management firms joining forces to deliver resilient and diversified portfolio solutions to a broader range of investors. The partnership leveraged State Street’s extensive history in providing liquid and transparent market solutions alongside Bridgewater’s expertise in strategic asset allocation and research-driven portfolio construction. The joint effort focused on creating investment products that could help clients navigate complex economic environments by incorporating sophisticated alternative strategies typically reserved for institutional investors.
• In September 2024, BlackRock entered into a strategic partnership with Partners Group to introduce a multi-private markets model solution aimed at the retail wealth sector. This collaboration was designed to provide individual investors with access to a single portfolio encompassing private equity, private credit, and real assets, managed jointly by both firms. The initiative sought to simplify the inclusion of alternative investments in client portfolios for financial advisors. By combining BlackRock’s diversified alternative capabilities and technology with Partners Group’s extensive experience in private market solutions, the companies aimed to address the growing demand for non-traditional asset classes among wealth market participants.

Key Market Players

• BlackRock, Inc.
• The Vanguard Group, Inc.
• Charles Schwab & Co., Inc.
• JPMorgan Chase & Co.
• FMR LLC
• State Street Corporation
• Morgan Stanley
• BNY Mellon Securities Corp.
• Amundi US
• The Goldman Sachs Group, Inc.

By Investment Strategy	By Investor Type	By Distribution Channel	By Region
Equity Strategy Fixed Income Strategy Multi Asset/Balanced Strategy Sustainable Strategy Money Market Strategy Others	Retail Individual	Direct Sales Financial Advisor Broker-Dealer Banks Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Mutual Fund Assets Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Mutual Fund Assets Market , By Investment Strategy:

• Equity Strategy
• Fixed Income Strategy
• Multi Asset/Balanced Strategy
• Sustainable Strategy
• Money Market Strategy
• Others

• Mutual Fund Assets Market , By Investor Type:

• Retail
• Individual

• Mutual Fund Assets Market , By Distribution Channel:

• Direct Sales
• Financial Advisor
• Broker-Dealer
• Banks
• Others

• Mutual Fund Assets Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE