Investment funds : a growing role in financing European economies

This paper provides a detailed analysis of the growth of the European funds industry and its success in catching up with its US counterpart. The article also asks whether the rise in equity and equity-oriented funds - one of the most noteworthy developments of the past decade - signals a profound cultural shift in attitudes towards risk or is just a passing fad. It further investigates whether savers might adopt a more « balanced » approach between fixed-income funds and more equity-oriented instruments in the medium term in light of the stock market tumbles of 2000/2001. In addition, the article tries to identify the external and technical factors likely to play a role in the European fund industry’s growth in the years ahead. JEL classifications : E21, G11