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The Latest Investment Fund Facts

8 Investment Fund Statistics That'll Blow Your Mind

What's New in the World of Investment Fund Statistics? Here Are All the Facts You Need to Know. Investment Funds Are a Financial Instrument That's Used to Diversify an Investment Portfolio To Generate Profits in Any Economic Climate, Without Being Subject to the Risks Associated With Individual Stocks or Bonds.

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investment facts and statistics
In this Article

Investment funds are a type of investment that pools the money from investors and then invests it to earn income for them. Investment funds can be either open-ended or closed-ended, meaning they have no set end date, or they do.

This article will go over some interesting facts about investment funds and how you can start investing in them today.

Investment Funds Statistics

Statistics #1: Mutual Funds Typically Maintain a Cash Ratio of 3% To 5%

This means that they’ll have the percentage of their assets in cash or marketable securities. Investments like stocks, bonds, and treasury bills1 with maturities of less than one year.

Cash Ratio

Statistics #2: Luxembourg Is the Second-Largest Mutual Fund Industry

According to the Investment Company Institute2, Luxembourg has a population of about 500,000 people and is the second-largest mutual fund industry in Europe.

luxembourg

Statistics #3: Fidelity Investments Has the Highest Mutual Funds With an Average Expense Ratio of 0.42%

Fidelity Investments is a mutual fund company that offers investments to its clients. The average expense ratio of Fidelity Investments’ funds ranges from 0.04% to 0.61%, which is lower than the industry average of 0.86%.

Fidelity Investments

Statistics #4: Active and Passive Fund Expense Ratios Are Expected to Decline by 22% By 2025

Based on a study by PwC3, the average expense ratio of an actively managed fund is expected to decline from 0.85% in 2015 to just 0.39%, while the expense ratio for a passively managed fund is expected to decline from 0.38% in 2015 to just 0.24%.

Expected to Decline

Statistics #5: 22% Of Investors Say the Primary Reason They Avoid Mutual Funds Is High Management Fees

A study conducted by Bankrate found that 22% of investors avoid mutual funds because they have high management fees, while 19% of investors are awaiting a market correction before investing in them.

Investment Fund Statistics

Statistics #6: Saving for Retirement Is the Primary Financial Goal for 73% Of Mutual Fund Owners

A study conducted by Fidelity Investments found that 73% of mutual fund owners are saving for retirement, while only 20% are saving for their children’s education.

Saving for Retirement

Statistics #7: 45% Of All Mutual Fund Assets Are Held in Retirement Accounts

According to the Investment Company Institute, 45% of all mutual fund assets are held in retirement accounts, while only 37% of all mutual fund assets are held in taxable accounts.

Retirement Account

Statistics #8: The Average Return on Mutual Funds in Seven Major Categories Was About 13%

The average return on mutual funds in seven significant categories was about 13% for the ten years ending December 31, 2017, while the S&P 500 index rose by about 121%.

Average Return

7 Fun Facts About Investment Funds

Fact #1: Hybrid Mutual Funds Have the Highest Asset-Weighted Average Expense Ratios at 0.78%

Hybrid funds are mutual funds that integrate a mixture of active management and indexing strategies, and they tend to have the highest average expense ratios at around 0.78%.

hybrid mutual fund

Fact #2: Mutual Fund Fees Can Reduce Your Returns by 0.5% To 8.5%

Mutual funds can cost anywhere from 0.25% to around 20%. This may not seem like a lot on the surface, but these fees can reduce your returns by between 0.50% and as much as an astounding 18%.

Mutual Fund Fees

Fact #3: Two-Thirds of All Actively-Managed Funds Do Worse Than Their Benchmark Indexes

A study by the Center for Research in Security Prices4 found that two-thirds of actively managed funds do worse than their benchmark indexes, which means they do not outperform their index by more than the difference in cost between a mutual fund and an ETF5.

Benchmark Indexes

Fact #4: For Stock Mutual Funds, A Good Long-Term Return Is 8%–10%

A study by Morningstar found that a good long-term return for stock mutual funds is around 8% to 10%, which is higher than the return of 5% to 7% for bonds.

Investment Fund Statistics

Fact #5: 99% Of Funds That Have Outperformed the Market in One Decade Fall to the Average the Following Decade

A study by the Vanguard Group found that 99% of funds that have outperformed the market in one decade tend to fall to the average return or below during a subsequent decade, which indicates that past performance is no guarantee for future success.

Funds on Market

Fact #6: The Largest Mutual Fund in the World Is the VTSAX

The Vanguard Total Stock Market Index Fund Admiral Shares (Vtsax) is the largest mutual fund in the world by AUM with about £330 billion, which is about three times larger than the second-largest fund.

Vanguard

Fact #7: Blackrock Funds Is the Largest Mutual Fund Management Company in the World

Blackrock Funds is the largest mutual fund management company globally, with over £25 trillion of assets under management, which is about one-third of the total assets under management for all mutual funds.

Blackrock Funds

Common Questions

What Is an Investment Fund?

Who Invests in Investment Funds?

What Are the Different Types of Investment Funds?

What Is the Difference Between Stocks and Bonds?

In Conclusion

It’s not uncommon for people to think of investing as a risky endeavor.

While it does carry some degree of risk when done right and with the right information in hand, investments can be an excellent tool for long-term savings and growth that will help you reach your financial goals.

Statistics show that investors who have invested in stocks over time fare significantly better than those who put their money into cash or fixed-income products like bonds or CDs.

References

  • www.statista.com/topics/5670/investment-funds/
  • www.ecb.europa.eu/stats/financial_corporations/investment_funds/html/index.en.html
  • www.balancingeverything.com/mutual-funds-statistics/
  • www.anevis-solutions.com/2019/5-statistics-investors-want-see-fund-fact-sheet/
  • www.theia.org/industry-data/fund-statistics
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