Mutual Funds

In 2022, there were 9,345 mutual fund companies, an increase of about 9 percent from the 8,370 in 2000, according to The Investment Company Institute (ICI). The United States had the world’s largest mutual fund market, with 48 percent of total net world assets, followed by Europe (32 percent), Africa and Asia-Pacific (15 percent), and the rest of the world (5 percent). In 2022, mutual fund companies managed $22.1 trillion in assets (including those of exchange-traded funds, closed-end funds, and unit investment trusts) for 115.3 million U.S. investors. Worldwide regulated open-end mutual fund assets were $60.1 trillion at the end of 2022.

Mutual funds are marketed and managed by large mutual fund complexes (Fidelity Investments, T. Rowe Price, etc.), mutual fund supermarkets (Charles Schwab and T.D. Ameritrade), securities broker-dealers and financial planners (Capital Group), smaller fund companies, and broker-dealer firms.

In 2022, the 10 largest firms managed 66 percent of mutual fund and exchange-traded fund assets (up from 46 percent in 2005). The top 25 companies held 83 percent of assets (up from 67 percent in 2005). MutualFundDirectory.org reports that the mutual fund companies with the largest assets under management (as of March 19, 2022) were:

1. BlackRock Funds
2. Vanguard
3. Charles Schwab
4. JPMorgan
5. Barclay Hedge
6. Fidelity Investments
7. State Street Global Advisors
8. Capital Group
9. BNY Mellon (Dreyfus)
10. Amundi Asset Management

Retail investors (i.e., households) held 88 percent of the $22.1 trillion mutual fund assets in the U.S. at the end of 2022. Institutional investors (i.e., financial institutions, nonprofit organizations, and nonfinancial businesses) held 12 percent of assets—mostly to help manage cash balances.

Mutual fund companies are located throughout the United States and the world. In 2018, 23 percent of investment fund industry workers were employed in just two states: Massachusetts and New York. Fund companies in California, Pennsylvania, and Texas employed more than 25 percent of fund industry employees. Other states with a significant number of workers included Colorado, Illinois, Kentucky, New Jersey, New Hampshire, and North Carolina. States with a very low number of investment fund workers included Arkansas, Idaho, Louisiana, Mississippi, Montana, North Dakota, South Dakota, West Virginia, and Wyoming.

Approximately 178,000 people were employed by U.S. investment companies (mutual funds, closed-end funds, exchange-traded funds, and unit investment trusts) in 2017 (the latest year for which data is available), with 39 percent of workers in fund management, 28 percent in investor servicing, 24 percent in sales and distribution, and 10 percent in fund administration. Overall employment has declined during economic recessions, the COVID-19 pandemic, and other national and international events, but the industry typically recovers and employment rebounds. Two fast-growing careers in mutual funds are financial analyst (which includes those who work as analysts, portfolio managers, and fund managers) and financial planner. The U.S. Department of Labor (DOL) projects both will grow much faster than the average through 2031 with employment of analysts who are employed by companies that manage funds, trusts, and other financial vehicles growing by 44.3 percent and employment of financial planners growing by 54.8 percent.

Many professional associations provide resources to those working in the mutual fund and related industries.

• The Investment Company Institute describes itself as “the leading association representing regulated funds globally, including mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States, and similar funds offered to investors in jurisdictions worldwide.” Its members manage total assets of $29.7 trillion in the United States, serve more than 100 million investors, and manage an additional $8.1 trillion in assets outside the United States. The institute offers information on continuing-education opportunities, answers to frequently asked questions about mutual funds, and the Investment Company Fact Book at its Web site. It also hosts a variety of annual and semi-annual events for members and other interested parties, including the Mutual Funds and Investment Management Conference, Operations and Technology Conference, Mutual Funds Compliance Programs Conference, and the Tax and Accounting Conference.
• The Mutual Fund Directors Forum is a nonprofit membership organization that serves independent directors of U.S. mutual funds. It offers continuing education opportunities and networking events.
• The CFA Institute offers the Certificate in Investment Performance Measurement Program and the Investment Foundations Certificate Program, which “covers the essentials of finance, ethics, and investment roles, providing a clear understanding of the global investment industry.” It has more than 190,000 members in 160 markets around the globe.
• The Chartered Alternate Investment Analyst Association provides certification and the online Fundamentals of Alternative Investments Certificate Program, an introductory level course on alternative investments.
• The CMT Association is a nonprofit professional regulatory organization of more than 4,500 market analysis professionals worldwide. It offers publications such as the Journal of Technical Analysis, the Chartered Market Technician credential, and continuing-education opportunities.
• The International Association for Quantitative Finance offers membership for college students and professionals. Its Web site contains useful education and job-search resources. The association offers a variety of resources for students, including an overview of financial engineering, a list of colleges and universities that offer training in the field, and interview and resume tips.
• The Securities Industry and Financial Markets Association represents the interests of asset managers, securities firms, and banks. It offers the following professional societies for individual members: the Compliance and Legal Society, and the Financial Management Society. Its Securities Industry Institute, an executive development program for securities industry professionals, is held each year at The Wharton School of the University of Pennsylvania.