GITNUXREPORT 2025

Investment Management Industry Statistics

Investment industry assets surpass $104.8 trillion with digital and ESG investing growing fast.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

Our Commitment to Accuracy

Rigorous fact-checking • Reputable sources • Regular updatesLearn more

Statistic 1

Approximately 65% of investors prefer digital or online channels for managing investments

Statistic 2

Nearly 80% of asset managers have implemented or are planning to implement AI tools in their investment decision processes by 2024

Statistic 3

The proportion of digital-only investment management firms increased from 10% in 2020 to 35% in 2023, indicating digitization acceleration

Statistic 4

Approximately 40% of investment management firms have adopted blockchain technology for clearing or record-keeping as of 2023

Statistic 5

The share of global assets managed via digital platforms is expected to reach 50% by 2025, reflecting digital transformation trends

Statistic 6

The average time to onboard new investors in large firms has shortened to 2 weeks, thanks to digital onboarding systems

Statistic 7

The total number of registered investment advisors (RIAs) in the U.S. was over 13,000 in 2023

Statistic 8

The percentage of women in investment management roles increased from 8% in 2010 to 15% in 2023

Statistic 9

The average age of portfolio managers in the industry is around 50 years old, indicating an upcoming generational shift

Statistic 10

Small asset management firms with under $1 billion in AUM represent over 60% of the global industry, highlighting industry fragmentation

Statistic 11

The median operating expense ratio for mutual funds slightly decreased to 0.45% in 2023 from 0.5% in 2018, indicating cost efficiencies

Statistic 12

The median active fund manager’s outperformance rate over passive funds is about 18% over a 10-year period

Statistic 13

Approximately 70% of institutional investors plan to increase allocations to alternative investments such as private equity and hedge funds by 2025

Statistic 14

The average annual return of actively managed equity funds was approximately 7% over the past decade, below the S&P 500 average of 10%

Statistic 15

The percentage of retail investors using mobile apps for investing increased by 25% from 2020 to 2023

Statistic 16

The average holding period for stocks within actively managed funds has decreased to approximately 3 years, indicating more frequent trading

Statistic 17

The share of passive investment funds (ETFs and index funds) in U.S. retirement accounts increased from 15% in 2015 to over 35% in 2023

Statistic 18

The median expense ratio for index funds globally stands at approximately 0.12%, significantly lower than actively managed funds

Statistic 19

The global average asset allocation to equities in retirement portfolios is about 60%, indicating a strong preference for equities among long-term investors

Statistic 20

The average trading volume of ETFs globally surpassed 1 billion shares daily in 2023, reflecting increased liquidity and investor activity

Statistic 21

AI-based predictive analytics are used by over 60% of large asset managers to optimize portfolio construction

Statistic 22

Pension fund allocations to alternative assets increased by 10% from 2018 to 2023, reaching about 20% of total fund assets

Statistic 23

The proportion of assets managed via quantitative strategies increased by 25% from 2019 to 2023, reflecting a shift toward data-driven investing

Statistic 24

The share of retail investors in cryptocurrency investments integrated into their portfolios rose from 5% in 2020 to 20% in 2023, showing rising interest in digital assets

Statistic 25

Nearly 50% of investment managers reported difficulty in sourcing active management alpha in 2023, leading to increased reliance on alternative data sources

Statistic 26

The penetration rate of mobile trading apps among active investors reached 55% globally in 2023, indicating a shift toward mobile-focused investing

Statistic 27

The adoption of machine-learning models in asset management increased by 50% between 2018 and 2023, improving predictive accuracy

Statistic 28

The proportion of investment management firms offering independent financial advisory services grew by 20% from 2019 to 2023, reflecting a client-centric approach

Statistic 29

The global assets under management (AUM) in the investment management industry reached $104.8 trillion in 2023

Statistic 30

As of 2022, passive investment funds account for approximately 45% of global AUM

Statistic 31

The U.S. investment management industry manages over $70 trillion in assets as of 2023

Statistic 32

ETF assets worldwide surpassed $10 trillion in 2023

Statistic 33

The average fee charged by mutual funds for active management is approximately 0.6% of assets annually

Statistic 34

The global robo-advisory market is projected to grow at a compound annual growth rate (CAGR) of 30% through 2025

Statistic 35

The Asia-Pacific region is expected to witness the fastest growth in investment management assets, with a CAGR of about 8% from 2022-2027

Statistic 36

The rise of ESG investing has contributed to a 20% increase in assets under management for sustainable funds globally from 2020 to 2023

Statistic 37

In 2023, technology-driven investment management platforms captured 35% of the global retail investment market share

Statistic 38

Year-over-year growth of managed account platforms was approximately 12% in 2023

Statistic 39

The combined total of assets under management in hedge funds globally reached around $4.2 trillion in 2023

Statistic 40

The global pension assets under management are projected to reach $56 trillion by 2028

Statistic 41

Over $3.5 trillion was invested through ESG funds in the U.S. alone in 2023, representing a 25% increase from the previous year

Statistic 42

The top 10 largest investment firms manage over $15 trillion in AUM collectively, representing approximately 15% of global AUM

Statistic 43

The median investment management fee for global mutual funds is around 0.5% of AUM, with actively managed funds charging higher fees than passive funds

Statistic 44

The number of fintech total investments in the investment management sector reached over $4 billion in 2023, a 40% increase from 2022

Statistic 45

Institutional investors allocate approximately 25% of their portfolios to private equity and venture capital investments, with some allocating up to 40%

Statistic 46

Investment management industry revenues exceeded $200 billion globally in 2023, driven primarily by management fees and trading commissions

Statistic 47

The global market for blockchain-based asset management solutions is projected to grow at a CAGR of 45% through 2027

Statistic 48

The average assets under management per investment advisor in the U.S. was approximately $5 million in 2023

Statistic 49

The global investment management industry is projected to grow annually by about 5% through 2026, reaching over $115 trillion in AUM

Statistic 50

The total number of cross-border investment fund products increased by 35% from 2018 to 2023, driven by globalization in asset management

Statistic 51

The industry’s revenue generated from trading commissions has decreased by 15% over the past 5 years due to fee compression, with a shift toward management fees

Statistic 52

Millennials are more likely to invest in ESG funds, with over 60% showing interest in sustainable investing

Statistic 53

In the past 5 years, ESG funds have outperformed traditional funds by an average of 2-3%, attracting more investor interest

Statistic 54

The adoption rate of sustainable investing strategies among asset managers increased from 35% in 2018 to over 70% in 2023

Statistic 55

Retail investors' assets in ESG funds have grown at an average annual rate of 30% over the past five years

Statistic 56

The number of investment management firms adopting environmental, social, and governance criteria increased by 80% from 2018 to 2023

Statistic 57

Over 85% of institutional investors consider climate risk a critical factor in their investment decisions

Statistic 58

The share of ESG-focused funds in mutual fund assets increased from 10% in 2015 to 25% in 2023, reflecting expanding investor demand

Statistic 59

Approximately 30% of assets in the industry are now managed by firms with a dedicated sustainability team, highlighting the importance of ESG integration

Slide 1 of 59

Sources

Our Reports have been cited by:

Trust Badges - Publications that have cited our reports

Key Highlights

The global assets under management (AUM) in the investment management industry reached $104.8 trillion in 2023
As of 2022, passive investment funds account for approximately 45% of global AUM
The U.S. investment management industry manages over $70 trillion in assets as of 2023
ETF assets worldwide surpassed $10 trillion in 2023
The average fee charged by mutual funds for active management is approximately 0.6% of assets annually
The total number of registered investment advisors (RIAs) in the U.S. was over 13,000 in 2023
Millennials are more likely to invest in ESG funds, with over 60% showing interest in sustainable investing
The global robo-advisory market is projected to grow at a compound annual growth rate (CAGR) of 30% through 2025
Approximately 65% of investors prefer digital or online channels for managing investments
The median active fund manager’s outperformance rate over passive funds is about 18% over a 10-year period
The percentage of women in investment management roles increased from 8% in 2010 to 15% in 2023
Approximately 70% of institutional investors plan to increase allocations to alternative investments such as private equity and hedge funds by 2025
The average age of portfolio managers in the industry is around 50 years old, indicating an upcoming generational shift

The investment management industry is undergoing a seismic shift toward digital innovation, sustainable investing, and evolving investor preferences, with global assets soaring past $105 trillion in 2023 and rapid growth in AI, ESG funds, and robo-advisors shaping its future landscape.

Digital Transformation and Technology Adoption

Approximately 65% of investors prefer digital or online channels for managing investments
Nearly 80% of asset managers have implemented or are planning to implement AI tools in their investment decision processes by 2024
The proportion of digital-only investment management firms increased from 10% in 2020 to 35% in 2023, indicating digitization acceleration
Approximately 40% of investment management firms have adopted blockchain technology for clearing or record-keeping as of 2023
The share of global assets managed via digital platforms is expected to reach 50% by 2025, reflecting digital transformation trends
The average time to onboard new investors in large firms has shortened to 2 weeks, thanks to digital onboarding systems

Digital Transformation and Technology Adoption Interpretation

As the investment management industry accelerates into a digital future, with 65% of investors favoring online platforms and firms racing to adopt AI, blockchain, and rapid onboarding in record time, it's clear that traditional asset management is evolving into a tech-savvy arena where digital proficiency isn't just an option—it's the new standard.

Industry Demographics and Workforce Characteristics

The total number of registered investment advisors (RIAs) in the U.S. was over 13,000 in 2023
The percentage of women in investment management roles increased from 8% in 2010 to 15% in 2023
The average age of portfolio managers in the industry is around 50 years old, indicating an upcoming generational shift
Small asset management firms with under $1 billion in AUM represent over 60% of the global industry, highlighting industry fragmentation
The median operating expense ratio for mutual funds slightly decreased to 0.45% in 2023 from 0.5% in 2018, indicating cost efficiencies

Industry Demographics and Workforce Characteristics Interpretation

As the industry boasts over 13,000 RIAs and a female undercurrent rising to 15%, with nearly two-thirds of firms under $1 billion managing fragmented assets and a venerable cohort aging towards succession, the landscape is both expanding and on the cusp of a generational and structural renaissance, all while margins inch downward toward leaner operations.

Investment Trends and Product Adoption

The median active fund manager’s outperformance rate over passive funds is about 18% over a 10-year period
Approximately 70% of institutional investors plan to increase allocations to alternative investments such as private equity and hedge funds by 2025
The average annual return of actively managed equity funds was approximately 7% over the past decade, below the S&P 500 average of 10%
The percentage of retail investors using mobile apps for investing increased by 25% from 2020 to 2023
The average holding period for stocks within actively managed funds has decreased to approximately 3 years, indicating more frequent trading
The share of passive investment funds (ETFs and index funds) in U.S. retirement accounts increased from 15% in 2015 to over 35% in 2023
The median expense ratio for index funds globally stands at approximately 0.12%, significantly lower than actively managed funds
The global average asset allocation to equities in retirement portfolios is about 60%, indicating a strong preference for equities among long-term investors
The average trading volume of ETFs globally surpassed 1 billion shares daily in 2023, reflecting increased liquidity and investor activity
AI-based predictive analytics are used by over 60% of large asset managers to optimize portfolio construction
Pension fund allocations to alternative assets increased by 10% from 2018 to 2023, reaching about 20% of total fund assets
The proportion of assets managed via quantitative strategies increased by 25% from 2019 to 2023, reflecting a shift toward data-driven investing
The share of retail investors in cryptocurrency investments integrated into their portfolios rose from 5% in 2020 to 20% in 2023, showing rising interest in digital assets
Nearly 50% of investment managers reported difficulty in sourcing active management alpha in 2023, leading to increased reliance on alternative data sources
The penetration rate of mobile trading apps among active investors reached 55% globally in 2023, indicating a shift toward mobile-focused investing
The adoption of machine-learning models in asset management increased by 50% between 2018 and 2023, improving predictive accuracy
The proportion of investment management firms offering independent financial advisory services grew by 20% from 2019 to 2023, reflecting a client-centric approach

Investment Trends and Product Adoption Interpretation

Despite active managers claiming an 18% edge over passive funds over a decade, the rising tide of passive investments, digital retail engagement, and AI-driven strategies reveals that the industry is increasingly embracing efficiency and data ingenuity over traditional outperformance pursuits.

Market Size and Assets Under Management

The global assets under management (AUM) in the investment management industry reached $104.8 trillion in 2023
As of 2022, passive investment funds account for approximately 45% of global AUM
The U.S. investment management industry manages over $70 trillion in assets as of 2023
ETF assets worldwide surpassed $10 trillion in 2023
The average fee charged by mutual funds for active management is approximately 0.6% of assets annually
The global robo-advisory market is projected to grow at a compound annual growth rate (CAGR) of 30% through 2025
The Asia-Pacific region is expected to witness the fastest growth in investment management assets, with a CAGR of about 8% from 2022-2027
The rise of ESG investing has contributed to a 20% increase in assets under management for sustainable funds globally from 2020 to 2023
In 2023, technology-driven investment management platforms captured 35% of the global retail investment market share
Year-over-year growth of managed account platforms was approximately 12% in 2023
The combined total of assets under management in hedge funds globally reached around $4.2 trillion in 2023
The global pension assets under management are projected to reach $56 trillion by 2028
Over $3.5 trillion was invested through ESG funds in the U.S. alone in 2023, representing a 25% increase from the previous year
The top 10 largest investment firms manage over $15 trillion in AUM collectively, representing approximately 15% of global AUM
The median investment management fee for global mutual funds is around 0.5% of AUM, with actively managed funds charging higher fees than passive funds
The number of fintech total investments in the investment management sector reached over $4 billion in 2023, a 40% increase from 2022
Institutional investors allocate approximately 25% of their portfolios to private equity and venture capital investments, with some allocating up to 40%
Investment management industry revenues exceeded $200 billion globally in 2023, driven primarily by management fees and trading commissions
The global market for blockchain-based asset management solutions is projected to grow at a CAGR of 45% through 2027
The average assets under management per investment advisor in the U.S. was approximately $5 million in 2023
The global investment management industry is projected to grow annually by about 5% through 2026, reaching over $115 trillion in AUM
The total number of cross-border investment fund products increased by 35% from 2018 to 2023, driven by globalization in asset management
The industry’s revenue generated from trading commissions has decreased by 15% over the past 5 years due to fee compression, with a shift toward management fees

Market Size and Assets Under Management Interpretation

As the investment management industry soars past $100 trillion—with passive funds, ESG investing, and fintech leading the charge—it's clear that even as fees tighten and global assets diversify, capitalizing on technological innovation and regional growth remains paramount in navigating this trillion-dollar landscape.

Sustainability, ESG, and Responsible Investing

Millennials are more likely to invest in ESG funds, with over 60% showing interest in sustainable investing
In the past 5 years, ESG funds have outperformed traditional funds by an average of 2-3%, attracting more investor interest
The adoption rate of sustainable investing strategies among asset managers increased from 35% in 2018 to over 70% in 2023
Retail investors' assets in ESG funds have grown at an average annual rate of 30% over the past five years
The number of investment management firms adopting environmental, social, and governance criteria increased by 80% from 2018 to 2023
Over 85% of institutional investors consider climate risk a critical factor in their investment decisions
The share of ESG-focused funds in mutual fund assets increased from 10% in 2015 to 25% in 2023, reflecting expanding investor demand
Approximately 30% of assets in the industry are now managed by firms with a dedicated sustainability team, highlighting the importance of ESG integration

Sustainability, ESG, and Responsible Investing Interpretation

As ESG investing evolves from a niche to a mainstream mandate—with millennials leading the charge, outperforming traditional funds, and nearly a third of assets now managed by sustainability-focused firms—the industry’s shift towards climate-conscious, socially responsible portfolios signals that profit and purpose are no longer mutually exclusive but mutually valorized in today’s investment landscape.