NAICS 525910 Quarterly Industry Report
Open-End Investment Funds
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 525910Sector: Finance and Insurance (52)Updated: Q1 2026
About This Report
This industry profile for Open-End Investment Funds (NAICS 525910) draws on data from the U.S. Census Bureau[5], Investment Company Institute[3], and SBA size standards[6]. Published by Fair Market Value and updated quarterly, it provides financial professionals, fund managers, and business researchers with classification guidance and market context. Additional data is drawn from Bureau of Labor Statistics[7].. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the open-end investment funds industry.
NAICS Sector
52
Finance and Insurance
Industry Definition & Overview
Open-End Investment Funds (NAICS 525910) encompasses legal entities organized to pool investor assets in securities and financial instruments, offering shares through continuous public offerings with redemption at net asset value. Mutual funds, exchange-traded funds (ETFs), and money market funds all fall under this classification. Per the Investment Company Institute[3], 53.7 percent of U.S. households owned mutual funds in 2024, reflecting the industry's central role in middle-class wealth building and retirement planning.
U.S. open-end fund assets exceed $31 trillion across hundreds of fund families. ETFs have captured record inflows in recent years, with assets reaching $13.46 trillion by year-end 2025 and net inflows exceeding $1.49 trillion in 2025 alone (Investment Company Institute[4]). Average expense ratios have declined steadily, falling from 0.83 percent in 2005 to 0.34 percent in 2024, driven by competition from passive index strategies and fee compression across the industry.
The industry exhibits strong geographic concentration. New York, Massachusetts, California, Pennsylvania, and Illinois account for the majority of U.S. money management assets, reflecting network effects, talent availability, and proximity to institutional investors. Fund operations are regulated primarily under the Investment Company Act of 1940, which requires SEC registration, board independence, daily NAV calculation, and disclosure of fees and risks.
What's Included in This Industry
- Open-end management investment companies (mutual funds)
- Equity mutual funds (domestic and international stock)
- Bond and fixed-income mutual funds
- Money market mutual funds
- Hybrid and balanced funds
- Exchange-traded funds (ETFs)
- Index mutual funds and index ETFs
- Target-date retirement funds
- Fund administration and NAV calculation services
- Investor servicing and fund distribution operations
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Finance and Insurance | 52 |
| Subsector | Funds, Trusts, and Other Financial Vehicles | 525 |
| Industry Group | Other Investment Pools and Funds | 5259 |
| NAICS Industry | Open-End Investment Funds | 52591 |
| National Industry | Open-End Investment Funds | 525910 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 525920 | Trusts, Estates, and Agency Accounts | Trusts, Estates, and Agency Accounts manage assets under fiduciary arrangements for individual beneficiaries, structurally different from the pooled public investment vehicles in 525910 |
| 525990 | Other Financial Vehicles | Other Financial Vehicles covers closed-end investment funds, mortgage REITs, and special purpose entities that do not continuously offer and redeem shares like open-end funds |
| 523940 | Portfolio Management and Investment Advice | Investment Advice establishments provide fee-based portfolio guidance to individual and institutional clients, distinct from the pooled fund structures that define 525910 |
| 523150 | Investment Banking and Securities Intermediation | Investment Banking and Securities Intermediation firms execute trades and underwrite securities, providing transactional services that support fund portfolio management activities |
| 522110 | Commercial Banking | Commercial Banking institutions provide depository and lending services used by investment funds for cash management, custody, and operational banking needs |
| 541110 | Offices of Lawyers | Offices of Lawyers provide legal counsel on fund formation, SEC registration, compliance, and regulatory matters essential to open-end fund operations |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Florida | 21.0% | 68 |
| 2 | California | 12.3% | 40 |
| 3 | Texas | 9.9% | 32 |
| 4 | New York | 6.2% | 20 |
| 5 | Illinois | 5.3% | 17 |
| 6 | Michigan | 5.3% | 17 |
| 7 | Maryland | 3.1% | 10 |
| 8 | New Jersey | 2.8% | 9 |
| 9 | Colorado | 2.8% | 9 |
| 10 | South Carolina | 2.5% | 8 |
% Of Establishments
0%
21%
Source: County Business Patterns, U.S. Census Bureau[2]
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 525910?
NAICS 525910 includes open-end management investment companies (mutual funds), exchange-traded funds (ETFs), money market funds, bond funds, equity funds, hybrid funds, index funds, and target-date retirement funds. These are legal entities that continuously offer new shares to investors and allow redemptions at daily net asset value.
How is the open-end investment fund industry structured?
The industry is dominated by large fund families managing trillions in assets, but hundreds of smaller boutique managers operate alongside them. Per the Investment Company Institute[3], U.S. open-end fund assets exceed $31 trillion. ETFs have grown rapidly, reaching $13.46 trillion by year-end 2025. Fee competition has driven average expense ratios to 0.34 percent, with passive index funds averaging just 0.05 percent. SEC regulations[10] require all funds to register and maintain independent boards.
What is the SBA size standard for NAICS 525910?
The SBA size standard is $40.0 million in average annual receipts (SBA Size Standards[6]). Most major fund complexes exceed this threshold, but smaller specialized fund managers and niche ETF sponsors may qualify as small businesses for federal contracting and loan eligibility purposes.
What NAICS codes are related to open-end investment funds?
Closely related codes include 525920 (Trusts, Estates, and Agency Accounts), 525990 (Other Financial Vehicles including closed-end funds), 523940 (Investment Advice), 523150 (Investment Banking and Securities Intermediation), and 525110 (Pension Funds). Each represents a different segment of the broader investment management and financial services ecosystem.
Which industries work most closely with open-end investment funds?
Pension funds (525110) and health/welfare funds (525120) are major institutional investors in mutual funds. Securities exchanges (523210) provide ETF trading venues. Investment advisors help retail and institutional clients select funds. Tax preparation services (541213) assist investors with fund-related tax reporting. Per Census Bureau data[11], custodian banks and transfer agents provide essential operational infrastructure for fund administration.
What activities are included in NAICS 525910?
Activities include operating mutual funds, managing ETFs, running money market funds, calculating daily net asset values, processing share purchases and redemptions, distributing dividends and capital gains, preparing prospectuses and shareholder reports, and maintaining compliance with SEC regulations under the Investment Company Act of 1940[12]. Fund boards must include a majority of independent directors.
Can you get an SBA loan for this type of business?
SBA loans are technically available for qualifying small businesses in the fund management space, provided they meet the $40.0 million size standard and other eligibility criteria. In practice, most fund operations require substantial initial capital and regulatory infrastructure that may exceed typical SBA loan amounts. Smaller fund startups or fund administration service providers may find SBA 7(a) loans useful for launch costs.
Which states have the highest concentration of open-end investment fund operations?
New York, Massachusetts, California, Pennsylvania, and Illinois host the largest concentration of fund management operations. Boston is home to Fidelity and other major fund families. New York serves as the primary financial center. These five states account for the majority of U.S. money management assets, driven by talent pools, institutional investor proximity, and established financial infrastructure.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, County Business Patterns census.gov
- [3]Investment Company Institute ici.org
- [4]Investment Company Institute ici.org
- [5]U.S. Census Bureau census.gov
- [6]SBA size standards sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]SEC regulations sec.gov
- [11]Census Bureau data data.census.gov
- [12]SEC regulations under the Investment Company Act of 1940 sec.gov
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