Visualizing Financial Data

Chapter 9 Mutual Funds

According to the International Investment Funds Association, total worldwide mutual fund assets have reached an all-time high, approximately $31 trillion (at the start of 2015), up $7.58 trillion over the previous 3 years. The majority of the mutual fund investors (approximately 82%) in the United States invest through employer-sponsored retirement plan accounts, and more than 7,900 funds raise assets via employer-sponsored retirement programs (source: Investment Company Institute, 2014).

In addition, investors are provided with a range of documentation materials to make their mutual fund choices. Available documentation on mutual funds (“Standard Fund Documentation”) typically includes the following:

• Fund fact sheet
• Summary prospectus
• Prospectus
• Statement of additional information
• One or more annual reports
• One or more semiannual reports
• One or more shareholder updates
• One or more holdings reports

With data that points to growth in assets under management, growth in number of investors, and growth in number of funds, documenting and displaying fund data in clear, relative terms has never been more crucial.

This list grows if you also include fund analysis provided by third parties such as Morningstar, MarketWatch, Bloomberg, and others. This abundance of mutual fund choices combined with an overabundance of documentation can overwhelm investors. ...