Mutual Funds

The mutual fund industry has enjoyed considerable growth in the past few decades. The number of mutual funds worldwide grew from 6,778 in 1997 to a peak of 9,616 funds in 2018. This strong growth was disrupted in 2020, however, by the coronavirus pandemic, which began in Wuhan, China, in late 2019. Business lockdowns and work and travel restrictions contributed to an economic slowdown. The number of funds has declined from 9,616 in 2018 to 8,653 in 2024, but overall growth in revenue will continue (albeit more slowly than in the past). The U.S. mutual fund industry is expected to expand at a compound annual growth rate of 6 percent from 2025 to 2030, according to Mordor Intelligence, a market research and advisory firm. Growth in this industry in the coming years will be due to projected increases in corporate profits and rising prices in financial markets.

Despite the recent downturn, mutual funds remain popular. According to the Investment Company Institute (ICI), more than 126.8 million U.S. investors had $38.8 trillion in assets (including those of exchange-traded funds, closed-end funds, and unit investment trusts) invested in mutual funds in 2024.

Moving forward, the industry will face a variety of challenges. Some of the major trends and potential roadblocks that will affect the mutual fund industry include:

• A strong shift by investors from investment in actively managed mutual funds to passively managed funds. In 2021, passively managed funds comprised approximately 43 percent of mutual fund/exchange traded fund assets under management (AUM), as compared to 36 percent of AUM in 2018, 23 percent of AUM in September 2015, and 9 percent of AUM in December 2005, according to Bloomberg. "Heightened cost sensitivity, the consistent underperformance of many active funds against benchmarks, and evolving investor preferences drive this trend, "reports Mordor Intelligence. "Simultaneously, exchange-traded funds, another variant of passive management, are experiencing even more rapid expansion."
• Mutual fund companies are reducing management and other fees in order to compete for business. Industry giant Fidelity is even offering no-fee funds, but that strategy is not an effective approach for smaller companies that are fighting for market share.
• A massive movement of wealth from older generations to Generations X and Y investors. Portfolio managers will need to understand these younger groups’ investment goals (passive vs. active) and communication preferences (such as using social media and having videoconferences with their investment advisers).
• The growing use of data and predictive analytics software by portfolio managers and mutual fund executives to make investment and operational decisions, better understand the needs of existing clients and market to new ones, and identify high-producing geographies and territories and locate new target markets, among many other uses.
• The development of algorithm-driven financial portfolio management software that allows customers to invest with minimal human interaction. Robo advisor firms such as Wealthfront and Betterment have emerged to provide robo advisory investment services. "Younger, tech-savvy generations, especially millennials, are gravitating toward robo-advisors," according to Mordor Intelligence. "These individuals, comfortable with digital platforms, prefer not to seek traditional financial advisors. They value a straightforward, user-friendly interface for managing investments online or via mobile apps." Grand View Research reports that revenue in the global robo advisory market size is expected to grow from $6.61 billion in 2023 to $41.83 billion by 2030. Some traditional investment management firms such as Fidelity and Charles Schwab have embraced the use of robo advisory software to complement their traditional offerings. “Established players that have historically focused on an older, wealthier client base can also leverage the technology to court a new class of younger investors, who’ve shown an enthusiasm for the digital financial realm via online stock trading apps like Robinhood and for assets like cryptocurrency,” according to an article about the growing popularity of robo-advisors at CNBC.com.
• The introduction of new or lesser-known investments such as business development companies, catastrophe bonds, and master limited partnerships, as well as exchange-traded products, guaranteed retirement income products, and retail alternatives, as a strategy to gain market share in an increasingly competitive market.

The DOL reports that employment for many occupations in the securities, commodities, and other investments industry is expected to increase from 2023 to 2033. The following paragraphs provide employment outlooks for a variety of workers who work for companies that manage funds, trusts, and other financial vehicles.

Job opportunities for accountants and auditors are expected to increase by 9.7 percent. The DOL says that “globalization, a growing economy, and a complex tax and regulatory environment are expected to continue to lead to strong demand for accountants and auditors.”

Employment for financial and investment analysts (including analysts, fund managers, and portfolio managers) is expected to grow by 14.7 percent. The DOL reports that “a growing range of financial products and the need for in-depth knowledge of geographic regions are expected to lead to strong employment growth. Demand also is projected to increase as Big Data and technological improvements allow financial analysts to conduct high-quality analysis. This analysis will help businesses manage their finances, identify investment trends, and deliver new products or services to clients.” Financial analysts with a graduate degree in finance and certification will have the best job prospects.

Employment for marketing managers is expected to grow by 9.7 percent. Increasing competition for investment dollars will create demand for marketing professionals who can create campaigns that attract new customers—especially those from younger generations.

Career opportunities for financial managers (including chief financial officers, controllers, treasurers and finance officers, risk managers) who are employed by funds, trusts, and other financial vehicles will increase by 20.7 percent. The DOL says that “services provided by financial managers, such as planning, directing, and coordinating investments, are likely to stay in demand as the economy grows. Candidates with expertise in accounting and finance—particularly those with a master's degree or certification—should enjoy the best job prospects.”

Employment for computer and information systems managers is expected to grow by 17.4 percent as a result of the increasing use of information technology in the middle and back offices of mutual fund companies, as well as in trading. Concerns about cybersecurity will create demand for information security analysts. Employment for these professionals in all industries will grow by 33 percent.

Job opportunities for financial planners are expected to increase by 9.7 percent. The replacement of traditional pension plans with individual retirement accounts has prompted more people to invest in mutual funds and other types of funds. Financial planners who are certified will have the best job prospects.

Competition for executive-level positions is extremely strong in the mutual fund industry. The DOL says that chief executives “with an advanced degree and extensive managerial experience will have the best job prospects.”

Industry surveys have identified a growing labor problem—the ability to recruit and retain employees with the skills needed to succeed. Fifty-five percent of asset management CEOs surveyed by PwC reported that it has become more difficult to hire qualified workers. “In a seller’s market for talent, potential employees are dictating where they want to work, and many are looking for employers that align with their values and priorities, such as work-life balance and diversity and inclusion in the workplace,” says PwC. “Firms are adopting a variety of strategies to bolster the workforce, such as upskilling employees and hiring from competitors.”

Salaries remain strong in the mutual fund industry. In 2025, portfolio managers earned salaries that ranged from $105,000 to $155,500, according to the staffing firm Robert Half. Managers at top funds can earn more than $500,000 a year. Earnings vary by job title. For example, the average salary for fund accountants was $66,516 in 2025, according to PayScale.com. Mutual funds sales representatives earned an average salary of $89,770 in 2025, according to ZipRecruiter.com.