The mutual fund industry in the United States is a large and diverse market that offers a wide range of investment options for individuals, institutions, and financial professionals. According to the Investment Company Institute, as of September 2021, there were over 8,000 mutual funds in the United States with more than $41 trillion in assets under management.
The mutual fund industry in the US is regulated by the Securities and Exchange Commission (SEC), which is responsible for overseeing the registration, operation, and disclosure of mutual funds. Under the Investment Company Act of 1940, mutual funds must register with the SEC and file regular reports on their activities and financial condition.
The mutual fund industry in the US is made up of two main types of funds: actively managed funds and passively managed funds (also known as index funds). Actively managed funds are managed by a professional fund manager who tries to beat the market by picking stocks or bonds, while passively managed funds simply track a market index such as the S&P 500.
The mutual fund industry in the US is highly competitive, with many different fund companies and thousands of different funds to choose from. This competition means that mutual funds are generally available at low costs and with a high degree of transparency and liquidity.
In recent years, the industry has seen a growing trend towards low-cost index funds and ETFs, which have been gaining popularity among investors due to their low expense ratios and ability to provide broad market exposure.
It’s important to note that mutual funds are not suitable for every investor and that investors should be aware of the risks and fees associated with mutual funds. It’s important to conduct a thorough research, read the fund’s prospectus, and consult with a financial advisor before making any investment decisions.