Chapter 4. Mutual Funds Are Popular!
U.S. households own numerous financial assets. They invested some $271 billion net in 2000 in financial assets, although this amount was down sharply from the $476 billion invested in 1999. On balance, households were net sellers of stocks and bonds held directly. However, they were net buyers of mutual funds.
Mutual funds are the quintessential asset for U.S. investors. In 1990, households owned 76 percent of all mutual fund assets. By 2000 they accounted for 80 percent of all mutual fund assets, and total mutual fund assets at that time totaled $7 trillion.
Perhaps they are reassured by statements such as that made to a mutual fund industry gathering by Arthur Levitt when he was chairman of SEC and a well-known ...