Saving investment banking finance concept. Stack of coins with piggy bank on the table. Growth of loan and investment business idea. Asset Management, Funds, Liabilities, Deposits, Income, Successful.
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Jinda Noipho
The global asset management industry grew to $128 trillion in assets under management (AUM) in CY24, a record, and a 12 per cent rise from the previous year, a global report said.
The industry’s performance marks a rebound from the decline it suffered in 2022, but the recovery belies mounting structural pressures that demand urgent reinvention, according to Boston Consulting Group’s (BCG) Global Asset Management 2025 report titled From Recovery to Reinvention.
The report reveals that more than 70 per cent of the industry’s $58 billion in revenue growth in 2024 was driven by market performance rather than investor inflows, underscoring the industry’s vulnerability to external forces. Persistent fee compression, shifts in investor preferences, and digital disruption are pushing firms to redesign their business models, accelerate cost innovation, and sharpen their strategic focus.
“The asset management industry globally has entered a pivotal phase — moving beyond recovery in last few years into a period of reinvention. India has seen some softening of retail participation in 2025 but the shift of household savings from traditional instruments like fixed deposits to capital markets, especially mutual funds, continues. We expect continued democratisation of the market, higher growth of passives and alternatives, and structural movement towards retirement pools,” said Mayank Jha, MD & Partner, BCG.
3 vital factors
The report highlights three forces reshaping the industry. First, asset managers can claim a larger portion of a shrinking but important pool of actively managed assets — specifically, in active exchange-traded funds (ETFs), model portfolios, and separately managed accounts. Second, strategic partnerships and M&A are reshaping the landscape as firms race to gain scale, broaden offerings, and build technology capabilities.
Third, as asset managers emphasise operational efficiency, enhanced decision making, and client engagement, AI has emerged as a key accelerator.
Published on April 29, 2025
