Study examines mutual fund wealth building approach – Financial Regulation News – Financial Regulation News

Findings from a recently released Investment Company Institute (ICI) study maintain that mutual funds are essential to most domestic households building wealth.

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“Mutual funds are a key component of the household balance sheet for millions of Americans, especially moderate-income Americans, helping them to build a secure financial future,” ICI Senior Director of Retirement and Investor Research Sarah Holden said. “Most shareholders view the mutual fund industry favorably and are confident that mutual funds can help them achieve their financial goals.”

The scope of work was generated from the most recent survey conducted from May to June 2022, according to ICI, drawing a sample of 6,080 US households from the KnowledgePanel, administered by Ipsos.

The ICI indicated the analysis showed 68.6 million, or 52.3 percent, of households owned mutual funds in 2022 – representing 115.3 million individual investors owning mutual funds.

Other findings include Baby Boomer households possessing the largest portion of households’ mutual fund assets; Generation X and Millennial mutual fund–owning households are more likely to hold funds only inside employer-sponsored retirement plans; the incidence of mutual fund ownership is higher among older generations; and households across all income groups own mutual funds.

According to ICI, the study showed that almost all mutual fund–owning households were focused on retirement saving, with many purchasing their first mutual fund through a retirement plan at work.