Open-End Investment Funds in the US
The Open-End Investment Funds industry has grown only marginally in recent years, despite substantial growth in financial markets. Industry revenue growth was slower than overall asset growth as operators have been forced to lower fees to meet shifting consumer preference. The US bull market that has benefited the industry since 2012 is likely to continue in 2018, as the value of the S&P 500 is expected to increase. Additionally, the biggest shift for the industry over the past five years has been evolving investor preference for exchange-traded funds (ETFs). ETFs generally have lower fees and more liquidity than mutual funds. Over the five years to 2023, as underlying financial market conditions improve, investor inflows are forecast to drive both industry assets and revenue up moving forward.
This industry comprises legal entities (funds) that earn fees by pooling and investing money, giving the investors rights to a proportional share of the fund performance. Ownership shares of these funds are sold to the public in initial public offerings with additional shares offered continuously. Investors redeem the shares at prices determined by the fund’s net asset value or market value. This report focuses on mutual funds and exchange-traded funds.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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