Mutual Funds

Mutual Funds

Introduction

With $11.6 trillion in assets, the U.S. mutual fund industry remained the largest in the world at year-end 2011. Total net assets decreased $199 billion from year-end 2010, as gains in bond and hybrid fund assets were more than offset by declines in equity and money market fund assets. Demand for mutual funds remained weak in 2011, with net withdrawals from all types of mutual funds amounting to $100 billion. Investor demand for certain types of mutual funds appeared to be driven in large part by the low interest rate environment, volatility in the equity market, and the ...