The mutual fund industry, a colossal financial ecosystem now valued in the tens of trillions of dollars globally, is not just about impressive asset growth but a dynamic story of shifting investor preferences, competitive fees, and varied performance that this deep dive into the latest data reveals.
Key Takeaways
- In 2023, the total assets under management (AUM) for U.S. mutual funds reached $18.91 trillion, marking a 6.2% increase from the previous year.
- Equity mutual funds in the U.S. held $13.41 trillion in AUM as of year-end 2023, representing 70.9% of total mutual fund AUM.
- Bond mutual funds accounted for $5.12 trillion in AUM in the U.S. at the end of 2023, comprising 27.1% of the total market.
- Global mutual fund industry AUM grew at a CAGR of 7.8% from 2018-2023.
- U.S. mutual fund net inflows reached $480 billion in 2023.
- Equity mutual fund sales in U.S. totaled $650 billion in 2023.
- Number of U.S. households owning mutual funds reached 64.5 million in 2023.
- 54% of U.S. families owned mutual funds in 2022 ICI survey.
- Average age of U.S. mutual fund investors was 51 years in 2023.
- U.S. equity mutual funds 10-year annualized return averaged 9.8% as of Dec 2023.
- U.S. large-cap blend mutual funds returned 12.5% in 2023.
- Global equity mutual funds averaged 15.2% return in 2023.
- Average expense ratio for U.S. equity mutual funds was 0.44% in 2023.
- U.S. index equity mutual fund average expense ratio dropped to 0.05% in 2023.
- Actively managed U.S. equity funds average TER was 0.78% end-2023.
The mutual fund industry sees major growth globally with strong U.S. dominance and an ongoing shift to passive investing.
AUM Statistics
- In 2023, the total assets under management (AUM) for U.S. mutual funds reached $18.91 trillion, marking a 6.2% increase from the previous year.
- Equity mutual funds in the U.S. held $13.41 trillion in AUM as of year-end 2023, representing 70.9% of total mutual fund AUM.
- Bond mutual funds accounted for $5.12 trillion in AUM in the U.S. at the end of 2023, comprising 27.1% of the total market.
- Money market mutual funds in the U.S. had $6.35 trillion in AUM as of December 2023, up 12.4% year-over-year.
- Hybrid mutual funds in the U.S. managed $1.78 trillion in AUM by end-2023, a slight decline of 1.2% from 2022.
- Globally, mutual fund AUM stood at $63.1 trillion in 2022, according to EFAMA data.
- In India, mutual fund AUM grew to INR 50.15 lakh crore (approximately $602 billion) as of March 2024.
- U.S. long-term mutual funds (excluding money market) AUM was $24.9 trillion in Q4 2023.
- Actively managed U.S. equity mutual funds held $5.8 trillion AUM in 2023.
- Index equity mutual funds in the U.S. reached $4.2 trillion AUM by end-2023.
- U.S. taxable bond mutual funds AUM was $3.9 trillion in 2023.
- Municipal bond mutual funds AUM in U.S. totaled $1.2 trillion as of December 2023.
- Europe mutual fund AUM hit €17.8 trillion in 2023 per EFAMA.
- China mutual fund AUM exceeded RMB 27 trillion ($3.8 trillion) in 2023.
- U.S. target-date mutual funds AUM reached $3.1 trillion in 2023.
- Actively managed bond funds in U.S. had $2.7 trillion AUM end-2023.
- Global ETF and mutual fund combined AUM was $120 trillion in 2023.
- India equity mutual fund AUM was INR 23.42 lakh crore in March 2024.
- U.S. balanced/hybrid mutual funds AUM at $1.78 trillion in Q4 2023.
- Asia ex-Japan mutual fund AUM grew to $4.5 trillion in 2023.
- U.S. sector equity mutual funds AUM was $0.9 trillion end-2023.
- Latin America mutual fund AUM reached $1.2 trillion in 2023.
- U.S. international equity mutual funds AUM totaled $1.4 trillion in 2023.
- UK mutual fund AUM stood at £1.4 trillion ($1.8 trillion) in 2023.
- U.S. money market funds retail share class AUM was $1.6 trillion in 2023.
- Canada mutual fund AUM was CAD 2.1 trillion in 2023.
- U.S. alternative mutual funds AUM hit $0.15 trillion end-2023.
- Australia mutual fund AUM reached AUD 1.0 trillion in 2023.
- Global UCITS mutual funds AUM was €13.5 trillion in 2023.
- U.S. closed-end mutual funds AUM was $0.28 trillion in 2023.
AUM Statistics Interpretation
Despite our modest $18.91 trillion tucked mostly into equities and bonds at home, the world is collectively betting over $120 trillion on the idea that we all know what we're doing.
Fees and Expenses
- Average expense ratio for U.S. equity mutual funds was 0.44% in 2023.
- U.S. index equity mutual fund average expense ratio dropped to 0.05% in 2023.
- Actively managed U.S. equity funds average TER was 0.78% end-2023.
- U.S. bond mutual funds average expense ratio was 0.48% in 2023.
- India equity mutual funds average expense ratio was 1.65% in FY24.
- U.S. target-date mutual funds average fee was 0.42% in 2023.
- Global mutual fund average management fee declined to 0.92% in 2023.
- U.S. actively managed bond funds expense ratio averaged 0.55% in 2023.
- Money market mutual funds U.S. expense ratio was 0.32% in 2023.
- U.S. load fees for equity mutual funds averaged 4.8% front-end in 2023.
- No-load U.S. mutual funds comprised 78% of total in 2023.
- India direct plan mutual funds had 0.5% lower TER than regular plans in 2024.
- U.S. hybrid mutual funds average expense ratio 0.65% in 2023.
- Europe UCITS mutual funds average TER was 1.25% in 2023.
- U.S. sector fund expense ratios averaged 1.12% in 2023.
- 12b-1 fees for U.S. mutual funds averaged 0.22% in 2023.
- U.S. municipal bond fund expense ratio was 0.52% end-2023.
- Global ESG mutual funds average fee premium was 0.15% over conventional in 2023.
- U.S. small-cap mutual funds TER averaged 0.95% in 2023.
- India debt fund average expense ratio was 0.45% in FY24.
- U.S. international equity mutual fund fees 0.88% average in 2023.
- Expense ratio waivers reduced U.S. mutual fund costs by 10bps on average in 2023.
- U.S. retirement target-date funds fees fell 20% since 2018 to 0.42% in 2023.
Fees and Expenses Interpretation
While it seems the world is trying to get to zero, active managers are still charging like they’re finding the cure for cancer, yet index funds prove the best treatment is often just a placebo.
Growth and Trends
- Global mutual fund industry AUM grew at a CAGR of 7.8% from 2018-2023.
- U.S. mutual fund net inflows reached $480 billion in 2023.
- Equity mutual fund sales in U.S. totaled $650 billion in 2023.
- India mutual fund industry AUM grew 36% YoY to INR 50 lakh crore in FY24.
- Global passive mutual funds AUM share increased to 48% by 2023.
- U.S. bond mutual fund outflows were $300 billion in 2023.
- Number of U.S. mutual funds increased to 12,457 by end-2023.
- Europe mutual fund net assets grew 8.5% in 2023 per EFAMA.
- U.S. target-date fund AUM grew 10.2% annually over 5 years to 2023.
- India SIP inflows hit INR 19,300 crore in March 2024, up 80% YoY.
- Global ETF inflows surpassed $1 trillion in 2023, impacting mutual funds.
- U.S. active equity mutual fund AUM declined 5% in 2023.
- China mutual fund sales reached RMB 5.5 trillion in 2023.
- U.S. hybrid fund net issuance was positive $20 billion in 2023.
- Global sustainable mutual funds AUM doubled to $3 trillion from 2020-2023.
- U.S. mutual fund industry share of household assets was 37% in 2023.
- India mutual fund folios surged to 17.87 crore in March 2024.
- Europe equity mutual fund inflows rose 15% in 2023.
- U.S. index mutual fund AUM grew 12% YoY in 2023.
- Global mutual fund CAGR projected at 9% to 2028.
- U.S. money market fund AUM increased 25% in 2023 due to rate hikes.
- Active-to-passive shift led to 15% decline in active mutual fund share since 2018.
- India debt mutual fund AUM grew 20% YoY to INR 12.5 lakh crore FY24.
- U.S. international bond fund AUM up 4% in 2023.
- Global robo-advisory mutual fund allocations grew 30% in 2023.
- U.S. mutual fund liquidations numbered 450 in 2023.
Growth and Trends Interpretation
Despite a global shift towards passive investing and some rocky outflows, the mutual fund industry, fueled by relentless retail enthusiasm in markets like India and strategic innovations like target-date funds, has stubbornly refused to do anything but grow, adapt, and embed itself ever deeper into the world's financial fabric.
Investor Statistics
- Number of U.S. households owning mutual funds reached 64.5 million in 2023.
- 54% of U.S. families owned mutual funds in 2022 ICI survey.
- Average age of U.S. mutual fund investors was 51 years in 2023.
- 45% of U.S. mutual fund-owning households had income over $100k in 2023.
- Women represented 42% of U.S. mutual fund investors in 2023.
- India mutual fund investors numbered 8.9 crore unique in March 2024.
- 60% of U.S. mutual fund assets held by investors over 55 years old in 2023.
- Millennial U.S. mutual fund ownership grew to 25% of total investors by 2023.
- Average account balance for U.S. mutual fund investors was $125,000 in 2023.
- 32% of U.S. mutual fund households were retirement accounts in 2023.
- India retail investors comprised 98% of total mutual fund folios in 2024.
- African-American U.S. mutual fund ownership rate was 28% in 2023.
- Hispanic U.S. mutual fund investors grew 15% YoY to 2023.
- 70% of U.S. mutual fund investors used financial advisors in 2023.
- Gen Z U.S. mutual fund entry doubled to 5% of investors in 2023.
- India SIP investors reached 4.5 crore in March 2024.
- U.S. boomer generation held 52% of mutual fund assets in 2023.
- 25% of U.S. mutual fund-owning families had children under 18 in 2023.
- High-net-worth U.S. individuals (>$1M assets) allocated 22% to mutual funds in 2023.
- Europe mutual fund investor households numbered 85 million in 2023.
- U.S. self-directed mutual fund investors rose to 40% in 2023.
- India urban mutual fund investors were 65% of total in 2024.
- U.S. mutual fund investors average holding period was 4.5 years in 2023.
- 15% of U.S. mutual fund assets held by institutional investors in 2023.
- Global mutual fund investor retention rate averaged 85% in 2023.
Investor Statistics Interpretation
The mutual fund industry appears to be run by wealthy, middle-aged American advisors for their wealthy, middle-aged American clients, with the rest of the world eagerly catching up and the youth cautiously peeking in the door.
Performance Statistics
- U.S. equity mutual funds 10-year annualized return averaged 9.8% as of Dec 2023.
- U.S. large-cap blend mutual funds returned 12.5% in 2023.
- Global equity mutual funds averaged 15.2% return in 2023.
- U.S. intermediate-term bond mutual funds returned 5.8% in 2023.
- India large-cap equity mutual funds averaged 22.4% 1-year return FY24.
- U.S. S&P 500 index mutual funds returned 26.3% in 2023.
- Actively managed U.S. large-growth funds underperformed index by 1.2% over 10 years to 2023.
- U.S. high-yield bond mutual funds yielded 7.1% in 2023.
- Europe equity mutual funds returned 14.7% in 2023 per EFAMA.
- U.S. target-date 2040 funds averaged 15.9% return in 2023.
- India mid-cap mutual funds returned 38.6% over 1 year to March 2024.
- U.S. emerging markets equity mutual funds returned 9.8% in 2023.
- 62% of U.S. active large-cap funds underperformed benchmark over 10 years to 2023.
- U.S. short-term bond funds returned 4.2% in 2023.
- Global balanced mutual funds averaged 11.5% return in 2023.
- U.S. dividend growth mutual funds returned 8.4% in 2023.
- India flexi-cap funds averaged 28.1% 1-year return FY24.
- U.S. municipal bond funds returned 5.1% in 2023.
- U.S. small-cap value mutual funds returned 11.2% in 2023.
- Active U.S. fixed-income funds beat passive by 0.5% over 10 years to 2023.
- U.S. real estate mutual funds returned 10.9% in 2023.
- Europe fixed-income mutual funds returned 6.3% in 2023.
- U.S. growth mutual funds 5-year annualized return was 13.2% to 2023.
- India ELSS mutual funds returned 24.5% over 3 years to 2024.
- U.S. value mutual funds returned 14.6% in 2023.
- Global commodity mutual funds averaged 4.8% return in 2023.
Performance Statistics Interpretation
The mutual fund industry's report card reads, "Impressive short-term gains abound, yet the persistent lag of active management against a soaring S&P 500 index suggests that for many investors, the best action might be a masterclass in inaction."
Sources & References
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