The Global Growth of Mutual Funds

Fernando, Deepthi; Klapper, Leora F.; Sulla, Victor; Vittas, Dimitri

The Global Growth of Mutual Funds

World Bank Policy Research Working Paper No. 3055

44 Pages Posted: 20 Apr 2016

See all articles by Deepthi Fernando

Leora F. Klapper

World Bank; World Bank - Development Research Group (DECRG)

Dimitri Vittas

World Bank - Financial Sector Development

Date Written: May 2003

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.

This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to study mutual funds development.

Suggested Citation: Suggested Citation

Fernando, Deepthi and Klapper, Leora F. and Sulla, Victor and Vittas, Dimitri, The Global Growth of Mutual Funds (May 2003). World Bank Policy Research Working Paper No. 3055. Available at SSRN: https://ssrn.com/abstract=636417