Dublin, July 28, 2023 (GLOBE NEWSWIRE) -- The "United States Mutual Funds Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The United States Mutual Funds Industry is projected to experience steady growth at a CAGR of 4% during the forecast period. In 2021, the industry held a staggering USD 26.96 trillion in total net assets, solidifying its position as the largest mutual fund market globally.
Furthermore, the United States accounted for over 40% of the global mutual fund market, underscoring its dominance in the sector.
The US mutual fund landscape comprised a quarter of the global number of mutual funds in 2021. Such a significant market share illustrates the vast scale of the US industry, with nearly a quarter of all funds globally falling under its purview.
These US Mutual Funds span a wide array of asset classes, including stocks and bonds, market caps, sectors, industries, and styles. These funds are actively managed to achieve both short and long-term returns. Many large companies in various industries, such as automobile, technology, healthcare, and the internet, are part of these funds' holdings.
The unprecedented economic impact of the COVID-19 pandemic affected nearly every aspect of the economy, including production, consumption, and accumulation. The financial markets, including equity, bond, and commodity markets, experienced severe repercussions, with oil and gold being particularly affected.
While the overall market experienced upside surprises in 2020, organic growth in the US mutual fund industry has continued to slow. Factors such as downward pressure on fees, reduced profit margins, and changing investor preferences have contributed to the long-term outlook being under stress. Interestingly, over the pandemic and into 2021, several smaller companies have gained momentum and outpaced the growth of established significant players in the mutual fund space.
US Mutual Funds Market Trends
The US mutual funds cover an extensive range of asset classes, including stocks and bonds, as well as market caps, sectors, industries, and styles. These funds can be either passively or actively managed to achieve specific short- and long-term investment objectives. The industry encompasses numerous large companies from various sectors, such as automobile, technology, healthcare, and the internet. Investors have the opportunity to invest in renowned companies like Apple, Amazon, Mastercard, Visa, Alphabet, Microsoft, and Facebook.
Many of these companies derive over 40% of their revenues from outside the United States. Recently, several Mutual Funds' investments have been routed through the Systematic Investment Plan (SIP) or Systematic Transfer Plan (STP) due to economic slowdown predictions by various Asset Under Management (AUM) firms for the next few months.
Growing Personal Finance Sector Driving Market Growth
The personal finance market segment has witnessed a surge in automated investment services, enabling private investors to align their investment strategies or portfolios using automated recommendations.
The fintech sector faced challenges due to a sharp decline in overall transactions and payments volumes, particularly in industries such as travel, tourism, restaurants, and entertainment, which saw drops of 70% to 90% year-over-year. On the other hand, everyday spending categories like food and grocery stores reported an increase in payment volumes. The pandemic accelerated the shift to e-commerce, with people increasingly purchasing and ordering items from home.
Fintech has revolutionized the financial services industry, making it more accessible to the average consumer. Robotic process automation adoption in banking tasks has yielded a return on investment of up to 100% within three to eight months.
The global investment value in fintech companies surpassed USD 225.7 billion in 2021, with the Americas attracting nearly 80% of the total investments in the sector.
US Mutual Funds Market Competitor Analysis
The US mutual funds industry boasts significant competition, featuring major international players. The forecasted growth opportunities in the industry are expected to further drive market competition. The industry exhibits a degree of consolidation, with a few players holding substantial market share. Key players profiled in the report include BlackRock Asset Management, The Vanguard Group, State Street Global Advisors, Fidelity Investments, and J.P. Morgan Asset Management, among others.
A selection of companies mentioned in this report includes
- BlackRock
- The Vanguard Group
- State Street Global Advisors
- Fidelity Investments
- J.P. Morgan Asset Management
- BNY Mellon Investment Management
- PIMCO
- UBS
- Allianz
- Amundi
For more information about this report visit https://www.researchandmarkets.com/r/ym6vle
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