News Release
ICI Applauds Introduction of Bipartisan GROWTH Act to Protect US Mutual Fund Shareholders
Washington, DC; March 12, 2025—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement after the Generating Retail Ownership Through Long-Term Holding Act (GROWTH Act) was introduced in the U.S. House of Representatives by Reps. Beth Van Duyne (R-TX-24) and Terri Sewell (D-AL-07).
“The GROWTH Act will help millions of American mutual fund investors build a more secure financial future by giving them the ability to save for the long term without facing an annual tax bill. This change will permit Americans to enjoy compound returns, incentivizing them to invest, and have them pay taxes upon exiting the mutual fund. We strongly urge the passage of the GROWTH Act and thank Representatives Van Duyne and Sewell for championing the long-term financial security of millions of Americans.”
Background:
- The bill would defer taxation of automatically reinvested capital gain distributions until shareholders actually sell their fund shares—allowing mutual fund shareholders to keep more of their own money working for them longer.
- This approach will help investors to maximize their long-term financial security.
- ICI research estimates that households hold about $7 trillion of long-term mutual fund assets in nonretirement accounts, highlighting the significant impact this legislation could have in helping Americans.