The number of funds and assets size of the mutual fund industry have grown dramatically since 1970 because of the introduction of

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All of the options listed have contributed to the growth of the mutual fund industry since 1970. Money market mutual funds in 1972 provided a new low-risk investment option for investors. Tax-exempt money market mutual funds in 1979 provided a tax-advantaged investment option to investors. Special-purpose equity, bond, and derivative funds offered investors more choices and diversification. 401-k retirement plans sponsored by employers encouraged more investors to participate in the market, leading to a larger pool of assets under management for the mutual fund industry.

The Number of Funds and Assets Size of the Mutual