The Global Growth of Mutual Funds

Abstract

With few exceptions, mainly in Asia,
 mutual funds grew explosively in most countries around the
 world during the 1990s. Equity funds predominated in
 Anglo-American countries while bond funds predominated in
 most of Continental Europe, and in middle-income countries.
 Capital market development (reflecting investor confidence
 in market integrity, liquidity, and efficiency) and
 financial system orientation were the main determinants of
 mutual fund growth. Restrictions on competing products acted
 as a catalyst for the development of money market and
 (short-term) bond funds.