25 September 2024
This year marks a historic anniversary. It has now been 100 years since the creation of the first US mutual fund. That was a pivotal moment for individual retail investors and the American economy. But it was more than that—so much more. I would argue that the mutual fund is the most important financial innovation in modern history.
I know what you are thinking. It’s generally believed that mutual funds have today reached maturity, or even may be ready for pasture. While the number of mutual fund owners (and AUM) has continued to rise, other products, especially ETFs, have rapidly gained market share and attention.