The mutual fund is turning 100 in 2024, and the Investment Company Institute is ready to celebrate.
In advance of the 100th anniversary of the launch of the first mutual fund—the first modern mutual fund debuted in the U.S. in 1924—the Investment Company Institute (ICI) is introducing a national partnership program to commemorate the 2024 anniversary and celebrate an innovation that made saving and investing accessible and affordable.
ICI and its partner organizations announced this week that it will hold events and programming across the country throughout 2024 to broaden public awareness about the importance of the mutual fund and the path for the next 100 years of success for this product.
“Mutual funds are the original and greatest democratizing force in the investing space, and continue to give people unprecedented access to the capital markets. All told, more than 100 million Americans, most of them from the middle class, depend on mutual funds to achieve their savings goals, from education to homeownership—and, of course, for retirement,” said ICI President and CEO Eric J. Pan. “For the great majority of Americans, the mutual fund is the cornerstone of their secure financial future.”
“For the great majority of Americans, the mutual fund is the cornerstone of their secure financial future.”
ICI President and CEO Eric J. Pan
Pan added that U.S. capital markets connect hundreds of millions of investors with companies of all sizes and direct hundreds of billions of dollars to their highest use, turning small businesses into big ones and making successful companies even better.
“Our capital markets find and fund the next American success story, day after day, and they make America itself the most successful economy in human history. Mutual funds are at the heart of this progress,” Pan said.
“The importance of the mutual fund is further bolstered by the innovation that has gone into them,” he added. “Our industry has gone to extraordinary lengths to give investors access to affordable, diversified, and professionally managed portfolios, and through fierce competition we’re constantly looking to expand both accessibility and affordability.”
At the same time, Pan said the industry has expanded the range of products offered to investors.
“Consider, for instance, target-date funds, which are particularly popular among younger 401(k) plan participants because they offer convenience and instant diversification,” Pan said. “It is safe to say that investors have an abundance of choice, with the ability to select from a diverse universe of products and strategies suitable to meet their financial objectives.”
This is why ICI wants to recognize and celebrate this progress, leading to the launch of the national partnership program in 2024 to commemorate the 100th anniversary of the mutual fund.
“We are grateful to our partners for helping us to broaden public awareness about the importance of this investment vehicle and the innovations continuing to take place in this space,” Pan concluded.
The following organizations are joining ICI in commemorating the 100th anniversary of mutual funds and will be partnering with ICI to present programming throughout 2024:
- Boston Asset Management Association
- Denver Area 1940 Act Group
- Greater Cincinnati Mutual Funds Association
- ICI Southwest
The oldest mutual fund still in existence is the MFS Massachusetts Investors Trust (MITTX), established in 1924, according to Investopedia’s “A Brief History of the Mutual Fund.” It marked the arrival of the modern mutual fund. It opened to investors in 1928, eventually spawning the mutual fund firm known today as MFS Investment Management. State Street Investors’ Trust was the custodian of the Massachusetts Investors’ Trust.
SEE ALSO:
• CITs to Overtake Mutual Funds as Most Popular Target Date Vehicle Within 2 Years
• A Closer Look at Large 401(k) Investment Menus: BrightScope/ICI Data
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
