Mutual Fund Investors Prioritize Low Fees and Diversification

Washington, DC; May 20, 2026— Mutual funds continue to be a popular investment product helping 72.7 million American households save for their long-term financial goals. The Investment Company Institute’s (ICI) latest research, “What US Households Consider When They Select Mutual Funds, 2025”, found that in 2025, nearly all mutual fund investors agree that diversification and cost effectiveness are important features of mutual funds.

“Investors continue to choose mutual funds because of their flexibility, diversification, cost-effectiveness, and professional management,” said Shelly Antoniewicz, ICI Chief Economist. “Retirement savers are not the only ones benefiting from these attractive investment vehicles. In 2025, 72% of mutual fund–owning households held mutual funds outside employer-sponsored retirement plans underscoring the role mutual funds play in helping families save for education, homeownership, and retirement.”

Hallmarks of Mutual Funds Make Them a Popular Investment
Percentage of mutual fund-owning households, 2025

Source: Investment Company Institute Annual Mutual Fund Shareholder Tracking Survey

Other Key Findings:

• In 2025, more than nine out of 10 mutual fund–owning households considered a fund’s investment objective, as well as the risk level of a fund’s investments, when selecting mutual fund investments. Four out of 10 mutual fund–owning households indicated that the risk level of the fund’s investments was very important in their fund selection decision.
• Mutual fund investors typically examine the historical performance of a fund and a fund’s performance compared with an index when purchasing a mutual fund. In 2025, more than nine out of 10 mutual fund–owning households considered these performance measures when selecting mutual funds. About half of mutual fund–owning households indicated that historical performance was very important to their fund purchase decision, and nearly four out of 10 said a fund’s performance compared with an index was very important.
• Mutual fund investors also review fund fees and expenses. In 2025, more than nine out of 10 mutual fund–owning households considered fund fees and expenses when selecting their mutual funds. About half of mutual fund–owning households indicated that fund fees and expenses were very important to their fund selection decision.

About the Study

ICI’s Annual Mutual Fund Shareholder Tracking Survey gathers information on mutual fund–owning households. In 2025, the survey found that 72.7 million US households, or 54%, owned mutual funds. In 2025, the survey asked mutual fund–owning households to rank the importance of a variety of factors when making their mutual fund purchase decisions.