Mutual funds are a popular investment option for individuals looking to diversify their portfolios and potentially generate long-term returns. As investors, it is important for us to make informed decisions based on historical performance and statistical data. One such measure that can help us evaluate mutual funds is the average mutual fund return. In this blog post, we will delve into the world of average mutual fund return statistics, exploring how this measure can guide our investment decisions and understanding the factors that influence it. With a deeper insight into these statistics, we can navigate the complex world of mutual funds more confidently and maximize our chances of achieving our financial goals. So, let’s dive in and uncover the fascinating world of average mutual fund return statistics.
The Latest Average Mutual Fund Return Statistics Explained
The average mutual fund return for a balanced mutual fund for the last 10 years as of 2021 is nearly 9-10%.
The statistic states that the average return of a balanced mutual fund over the past 10 years, as of 2021, is approximately 9-10%. A balanced mutual fund is a type of investment fund that looks to maintain a mix of investments across different asset classes, such as stocks, bonds, and cash equivalents, in order to achieve a balance between risk and growth. The average return of 9-10% indicates that, on average, investors in balanced mutual funds have seen their investments grow by around 9-10% per year over the past decade. This statistic can give potential investors an idea of the historical performance and potential profitability of balanced mutual funds.
In 2019, the average return on mutual funds was 16.3%.
The statistic “In 2019, the average return on mutual funds was 16.3%” indicates that, on average, mutual funds experienced a 16.3% increase in value throughout the year 2019. This means that investors who had their money invested in mutual funds, which are professionally managed investment portfolios, earned an average return of 16.3% on their investments over the course of the year. This statistic is helpful for individuals looking to evaluate the performance of mutual funds as a potential investment option.
As of 2020, the average five-year return for large-cap mutual funds was around 11.9%.
The statistic states that, as of the year 2020, the average rate of return over a five-year period for large-cap mutual funds was approximately 11.9%. This means that, on average, investors who had invested in large-cap mutual funds and held them for a period of five years experienced a return of around 11.9% on their investment. It is important to note that this is an average figure, and individual returns may vary depending on the specific mutual fund and the timing of the investment. Nevertheless, this statistic provides an indication of the general performance of large-cap mutual funds over a five-year period as of 2020.
In the long-run (10 years or more) most mutual funds underperform the S&P 500.
This statistic suggests that when looking at mutual funds over a long period of time, typically 10 years or more, the majority of them fail to achieve a higher return than the S&P 500 index. The S&P 500 is a benchmark that represents the performance of the 500 largest publicly traded companies in the US. The implication is that investing in a diversified portfolio that mirrors the S&P 500 index may be a more lucrative strategy compared to investing in the majority of mutual funds, as they struggle to consistently outperform this benchmark over the long term.
According to Dalbar, for 20 years ending 2019, the S&P 500 Index averaged 6.06%, while the average equity fund investor earned only 4.25% annually.
Based on a study by Dalbar, over a period of 20 years ending in 2019, the S&P 500 Index had an average annual return of 6.06%. However, during the same time frame, the average equity fund investor only earned a return of 4.25% annually. This indicates that, on average, individual investors underperformed the broader market index by 1.81% per year. The statistic suggests that despite the potential for higher returns in equity funds, individual investors were not able to fully capture these gains, potentially due to factors such as poor investment decisions, market timing, or high fees.
In 2020, the average long-term U.S. mutual fund inflows were $507 billion.
The statistic “In 2020, the average long-term U.S. mutual fund inflows were $507 billion” indicates that, on average, U.S. mutual funds received a total net inflow of $507 billion over the course of the year 2020. This means that throughout the year, investors deposited a substantial amount of money into these funds, surpassing the amount withdrawn by investors. The figure represents the average amount of net inflow across all long-term mutual funds in the United States and provides insight into the overall trend of investor interest and confidence in these investment vehicles during the given period.
The average mutual fund return for growth and income funds for the last 10 years is approximately 10.24%.
The statistic states that over the past 10 years, the average return of growth and income mutual funds has been approximately 10.24%. This means that, on average, investors who have invested in these types of funds have seen a return of around 10.24% on their investment over this time period. The average return indicates the overall performance of the funds, taking into account both positive and negative returns, and suggests that investing in growth and income mutual funds has proven to be a profitable strategy over the past decade.
Roughly 75% of mutual funds underperform their benchmark index over a 10-year period.
This statistic indicates that approximately 75% of mutual funds, over a span of 10 years, fail to achieve better returns than their benchmark index. A benchmark index is a predetermined standard used to measure the performance of a particular market or investment. Thus, the statistic suggests that most mutual funds are unable to outperform or beat the performance of the benchmark index over a long-term period, implying that the majority of mutual funds may not be offering superior investment opportunities compared to the overall market.
As of 2019, mutual funds managed more than $22.5 trillion in assets.
The statistic, “As of 2019, mutual funds managed more than $22.5 trillion in assets,” indicates that by the end of 2019, the collective value of assets held by mutual funds worldwide exceeded $22.5 trillion. Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, and other financial instruments. The magnitude of $22.5 trillion signifies the significant size and influence of mutual funds in the global financial market, as they play a crucial role in managing and allocating a substantial amount of capital on behalf of individual and institutional investors.
Only about 24% of active mutual fund managers outperformed the S&P 500 in 2019.
This statistic reveals that in 2019, only approximately 24% of active mutual fund managers were able to achieve better performance than the S&P 500. The S&P 500 is a widely followed benchmark index comprising 500 large publicly traded companies in the US, making it a good indicator of the overall performance of the stock market. The fact that only a minority of fund managers could outperform this index suggests that the majority of active mutual fund managers were unable to generate better returns for their investors compared to the broader market.
The 20-year annualized S&P return ending December 31, 2019, is 6.06%, yet the average equity fund investor saw a 4.25% over the same time period.
This statistic compares the performance of the S&P (Standard & Poor’s) index with the average return achieved by equity fund investors over a 20-year period, specifically from January 1, 2000, to December 31, 2019. The annualized S&P return during this period was 6.06%, meaning that if you were to compound the S&P’s average annual return over each of the 20 years, it would amount to a cumulative growth of 6.06%. On the other hand, the average equity fund investor saw a lower return of 4.25% over the same duration. This indicates that, on average, equity fund investors performed worse than the S&P index, likely due to factors like higher fees and individual investment decisions.
The S&P 500 index funds have a 10-year annualized return of 13.6%.
The statistic “The S&P 500 index funds have a 10-year annualized return of 13.6%” means that over a 10-year period, the average annual return for investments in S&P 500 index funds has been 13.6%. This figure reflects the compound annual growth rate (CAGR) of the funds’ performance, taking into account any fluctuations or changes in value over the specified timeframe. A 13.6% annualized return suggests that investors in S&P 500 index funds have experienced a steady and robust growth in their investments over the past decade.
The average bond mutual fund return is between 4-5%.
This statistic implies that, on average, bond mutual funds have generated a return between 4% and 5%. A bond mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of bonds. The return represents the percentage gain or loss on the initial investment over a specific period, usually one year. Having an average return between 4% and 5% suggests that investors in bond mutual funds can generally expect to earn this range of returns on their investment. However, it’s important to note that individual funds may have different returns, and this statistic speaks to the aggregate performance of all bond mutual funds collectively.
The average expense ratio for actively managed mutual funds is 0.82% in 2020.
The above statistic indicates that, on average, actively managed mutual funds charged their investors an expense ratio of 0.82% in the year 2020. The expense ratio is a measure of the annual fees that a mutual fund charges its investors, expressed as a percentage of the fund’s total assets. Actively managed mutual funds generally have higher expense ratios compared to passively managed funds, as they involve the selection and management of specific securities by fund managers. The 0.82% average expense ratio suggests that, on average, investors in these funds paid 0.82% of their invested amount as fees for the management and administrative costs of these funds in 2020.
As of 2020, nearly $21.3 trillion are invested in the U.S. mutual funds.
The statistic “As of 2020, nearly $21.3 trillion are invested in U.S. mutual funds” suggests that the collective sum of money invested in mutual funds within the United States reached approximately $21.3 trillion by 2020. This indicates a significant amount of capital being allocated towards these investment vehicles, showcasing the popularity and prominence of mutual funds as a preferred investment choice among individuals and institutions in the country.
During the late 1990s, the average return on equity mutual funds consistently surpassed 20% annually.
The statistic “During the late 1990s, the average return on equity mutual funds consistently surpassed 20% annually” indicates that during the period of time in the late 1990s, equity mutual funds consistently generated a return on investment that exceeded 20% per year. This suggests that investing in these funds during that time could have been highly profitable, as the returns were consistently higher than the average market returns. It is important to note that this statistic specifically refers to equity funds, which focus on investing in stocks of publicly traded companies, and the performance may not be representative of other types of mutual funds.
According to a 2020 report, Fidelity Contrafund, the largest actively managed mutual fund, has a 15-year annualized return of 9.93%.
The statistic indicates that as per a report from 2020, the Fidelity Contrafund, which is the largest actively managed mutual fund, has generated an average return of 9.93% per year over a span of 15 years. This implies that, on average, investors who have held their investments in this fund for a 15-year period have seen a yearly return of approximately 9.93%. This statistic provides insight into the fund’s long-term performance and can be used to evaluate its historical success in delivering positive returns to investors.
Conclusion
In conclusion, average mutual fund return statistics provide us with valuable insights into the performance of these investment options. By analyzing these figures, investors can evaluate the potential profitability and risk associated with different mutual funds. Although these statistics offer a useful benchmark, it is important to remember that past performance does not guarantee future results. Each investor should carefully consider their investment goals, risk tolerance, and conduct thorough research before making any investment decisions. By utilizing the information provided by average mutual fund return statistics, investors can make more informed choices and strive for long-term success in their investment journeys.
References
0. – https://www.www.thebalance.com
1. – https://www.www.investopedia.com
2. – https://www.www.businessinsider.com
3. – https://www.www.forbes.com
4. – https://www.www.thesimpledollar.com
5. – https://www.www.discover.com
6. – https://www.www.fool.com
7. – https://www.www.nerdwallet.com
8. – https://www.www.statista.com
9. – https://www.www.cnbc.com
