The Investment Company Institute, the U.S. lobby group for mutual funds, estimates that more than half of all households in the United States now own mutual funds.

ICI says that the number of U.S. households owning mutual funds grew to 54.8 million, or 52% of all U.S. households, during the past year, up from 51.7 million households the year before, according to survey results released today.

The number of individuals owning mutual funds rose to 93.3 million from 89.7 million in 2000. As a result, one out of every three individuals in the United States now owns mutual funds.

“More Americans own mutual funds than ever before,” ICI president Matthew Fink said. “Investors recognize the benefits of professional management, diversification, strict regulation and affordability that mutual funds offer. Mutual funds help investors achieve significant financial goals, including financing education and retirement.”

Fink attributed the 6% rise in household mutual fund ownership in large part to an increase in the percentage of shareholders who invest through defined contribution retirement plans. This indicates that the employer is an important investment channel for new fund owners. The research also found an increase in the percentage of investors who own funds outside of employer plans.

The survey also found that fund ownership tends to increase with income, 35% of all households with income less than $50,000 owned mutual funds, while 74% with income more than $50,000 owned mutual funds; and, most mutual fund households are headed by an individual 35 to 54 years old. About one-third of households headed by an individual under 25 years owned funds, while 41% of U.S. households headed by individuals 65 years or older owned funds.

The report is based on a survey of 3,019 randomly selected U.S. households conducted in May 2001.