Mutual Fund Asset Market SWOT Analysis by 2031
The mutual fund asset market size is expected to grow at a CAGR of 7.1% from 2023 to 2031. It is anticipated that regulatory agencies, governments, and other authorities in a number of nations will strengthen and grow their current mutual fund sector. Furthermore, the regulatory agencies persist in their efforts to improve market penetration and expansion through partnerships with e-wallets, e-commerce distribution, and other related platforms. Moreover, the governments of the various areas actively support and participate in the work of mutual fund distributors. Therefore, by improving the quality and depth of the engagement with channel partners, this element is speeding up the growth of mutual fund providers' income.
Mutual Fund Asset Market Analysis
The market is driven by demographic shifts, technological advancements, growing disposable incomes in developing economies, and an increasing emphasis on sustainable and diversified investment strategies. Investors can diversify their holdings among a variety of assets, including stocks, bonds, and commodities, by using mutual funds. By distributing investments throughout different industries and asset classes, diversification reduces risk and may produce more steady and reliable returns. Professional management, which mutual funds offer, contributes to the market's expansion.
Mutual Fund Asset Market Overview
- One of the most popular investment options available to small investors is a mutual fund. It also provides a reasonably priced way to participate in a diversified portfolio. Additionally, it pools the funds of multiple investors and uses them to purchase securities like bonds, equities, short-term loans, and other financial instruments.
- The ownership of an investor in the fund and the profits from their investments are represented by each share. The growing interest in mutual funds, which allow both large and small fund savers to take part in investment plans, is contributing significantly to the market's expansion. The development of the mutual fund assets market is also fueled by the use of digital technology, ease, and fair pricing in terms of investments, and sophisticated portfolio management services.
REGIONAL FRAMEWORK
Mutual Fund Asset Market Driver and Opportunities
Ability to Diversify Investment Portfolio to Drive the Mutual Fund Asset Market
- Due to investors' rising appetite for diverse portfolios, the global market for mutual fund assets is expanding. A convenient means of distributing risk across multiple asset classes, mutual funds are attractive to both new and experienced investors.
- Institutional investors have a major impact on the mutual fund assets market because of their huge capital and long-term investing plans. Their strategic decision-making and large investments shape market dynamics.
Increasing Adoption of Digital Technologies to Create Lucrative Market Opportunities
- The use of technology like blockchain, artificial intelligence, cloud computing, big data & analytics, robo-advisors, and others has accelerated in the mutual fund business. Moreover, mutual fund businesses use these technologies to lower costs and risk for the mutual fund market, centralize procedures to generate efficiencies, and offer simple access to complex services.
- Because more integrated and value-added services have been installed, this has assisted in creating client loyalty. Consequently, there is a greater deployment and implementation of technologies, which is driving the market expansion in order to provide efficient and convenient services while lowering operational costs. This, in turn, is expected to create lucrative opportunities for the mutual fund asset market during the forecast period.
Mutual Fund Asset Market Report Segmentation Analysis
The key segments that contributed to the derivation of the mutual fund asset market analysis are type, investment strategy, investment style, distribution channel, and investor type.
- The institutional segment is predicted to register significantly during the forecast period. Institutional investors, such as insurance companies, pension funds, and sovereign wealth funds, have significant financial resources and long-term investment aims.
- The ease and flexibility of buying mutual fund units directly from investors without the need for middlemen like brokers or financial advisors is provided by direct sales. The direct sales segment dominated the market share in 2023.
- The open-ended segment held a prominent market share in 2023. Its characteristics of flexibility and liquidity account for its prominence. There is no set quantity of shares in open-ended mutual funds; instead, they can issue new shares or redeem existing ones in response to demand from investors. This gives investors instant access to their money by enabling them to buy or sell shares at any moment.
Mutual Fund Asset Market Share Analysis By Geography
- The scope of the Mutual Fund Asset market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific region is expected to grow at the fastest CAGR during the forecast period.
- The Asia Pacific region is seeing rapid middle-class population growth and economic expansion, which is increasing disposable income and the requirement for investment options. Mutual funds are becoming a more popular choice for those building wealth since they allow them to diversify their investment portfolios.
- Mutual fund participation is increasing in markets like China and India because of technological advancements and legal changes that make investing more accessible. Furthermore, the expansion of financial markets and the liberalization of investment guidelines in numerous Asia Pacific countries have unlocked opportunities for both international and domestic fund managers to provide an extensive range of mutual funds.
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MARKET PLAYERS
Have a question?
Naveen
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
Mutual Fund Asset Market Driver and Opportunities
Ability to Diversify Investment Portfolio to Drive the Mutual Fund Asset Market
- Due to investors' rising appetite for diverse portfolios, the global market for mutual fund assets is expanding. A convenient means of distributing risk across multiple asset classes, mutual funds are attractive to both new and experienced investors.
- Institutional investors have a major impact on the mutual fund assets market because of their huge capital and long-term investing plans. Their strategic decision-making and large investments shape market dynamics.
Increasing Adoption of Digital Technologies to Create Lucrative Market Opportunities
- The use of technology like blockchain, artificial intelligence, cloud computing, big data & analytics, robo-advisors, and others has accelerated in the mutual fund business. Moreover, mutual fund businesses use these technologies to lower costs and risk for the mutual fund market, centralize procedures to generate efficiencies, and offer simple access to complex services.
- Because more integrated and value-added services have been installed, this has assisted in creating client loyalty. Consequently, there is a greater deployment and implementation of technologies, which is driving the market expansion in order to provide efficient and convenient services while lowering operational costs. This, in turn, is expected to create lucrative opportunities for the mutual fund asset market during the forecast period.
Mutual Fund Asset Market Report Segmentation Analysis
The key segments that contributed to the derivation of the mutual fund asset market analysis are type, investment strategy, investment style, distribution channel, and investor type.
- The institutional segment is predicted to register significantly during the forecast period. Institutional investors, such as insurance companies, pension funds, and sovereign wealth funds, have significant financial resources and long-term investment aims.
- The ease and flexibility of buying mutual fund units directly from investors without the need for middlemen like brokers or financial advisors is provided by direct sales. The direct sales segment dominated the market share in 2023.
- The open-ended segment held a prominent market share in 2023. Its characteristics of flexibility and liquidity account for its prominence. There is no set quantity of shares in open-ended mutual funds; instead, they can issue new shares or redeem existing ones in response to demand from investors. This gives investors instant access to their money by enabling them to buy or sell shares at any moment.
Mutual Fund Asset Market Share Analysis By Geography
- The scope of the Mutual Fund Asset market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific region is expected to grow at the fastest CAGR during the forecast period.
- The Asia Pacific region is seeing rapid middle-class population growth and economic expansion, which is increasing disposable income and the requirement for investment options. Mutual funds are becoming a more popular choice for those building wealth since they allow them to diversify their investment portfolios.
- Mutual fund participation is increasing in markets like China and India because of technological advancements and legal changes that make investing more accessible. Furthermore, the expansion of financial markets and the liberalization of investment guidelines in numerous Asia Pacific countries have unlocked opportunities for both international and domestic fund managers to provide an extensive range of mutual funds.
MARKET PLAYERS
Mutual Fund Asset Market Report Scope
Mutual Fund Asset Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Mutual Fund Asset market. Some of the recent key market developments are listed below:
- 2023, key global fund manager Franklin Templeton announced the introduction of the Franklin Sealand China A-shares fund, intending to provide retail investors in Singapore with a chance to invest in the China A-shares market. The fund's principal focus is on investing in equity securities of Chinese companies registered on the local stock exchange and China A-shares, with the goal of achieving long-term capital appreciation. [Source: Franklin Templeton, Company Website]
Mutual Fund Asset Market Report Coverage & Deliverables
The Mutual Fund Asset market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Mutual Fund Asset Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global mutual fund asset market was estimated to grow at a CAGR of 7.1% during 2023 - 2031.
The ability to diversify investment portfolios and sustainable investment trends are the major factors that propel the global mutual fund asset market.
The increasing adoption of digital technologies is anticipated to play a significant role in the global mutual fund asset market in the coming years.
The major players holding majority shares are BlackRock, Inc., The Vanguard Group, Inc., Charles Schwab & Co., Inc., JPMorgan Chase & Co., and FMR LLC.
Asia Pacific is anticipated to grow with a high growth rate during the forecast period.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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