The Investment Company Institute (ICI) is out with new data about (what else?) mutual funds.
In two studies—“Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2018” and “Characteristics of Mutual Fund Investors, 2018”—ICI discovered that nearly 100 million investors own mutual funds.
Owners are split almost down the middle in terms of household income, with half earning below $100,000 and half grossing at least six figures.
On the lower end of the spectrum, an almost equal number of investors (16 to 17 percent) report incomes of less than $49,000; more than $50,000 but less than $75,000; and more than $75,000 but less than $100,000.
Data show the remaining 51 percent of mutual fund owners earn $100,000 or greater.
“Our 2018 household survey shows that savers across all income levels continue to invest in mutual funds,” Sarah Holden, ICI senior director of retirement and investor research, said in a statement. “These data help underscore the critical role mutual funds play in helping millions of U.S. households save and prepare for retirement and other important financial goals.”
Broken down by generation, ICI found households headed by Baby Boomers have a greater tendency to own mutual funds—but not by much.
Just over a third (34 percent) of Boomers invest in this type of fund, compared to 32 percent of households headed by a member of Generation X.
Millennials lagged a little further behind, accounting for 23 percent of mutual fund owning households.
The younger generation is more likely to hold funds inside their 401ks or other employer-sponsored plans. Almost half (47 percent) indicate that this is the case.
Meanwhile, only a third of Baby Boom households could say the same.
Jessica Claeys is an editor, writer, and graphic designer, who has been creating both print and digital marketing and communications content for 10+ years.
Jessa Claeys is a licensed insurance producer in the state of Colorado and an insurance editor for Bankrate. She currently covers auto, home and life insurance with the goal of helping others secure a healthy financial future. Jessa has over a decade of experience writing, editing and leading teams of content creators. Her work has been published by several insurance, personal finance and investment-focused publications, including BiggerPockets, 401(k) Specialist, BP Wealth and more.