The Financial Times recently reported that the number of European mutual funds is shrinking as banks are focusing on building deposits rather than selling funds in order to build capital. In the first six months of 2012, 1,620 funds were shut down compared to 1,104 launches. This follows a trend observed at the end of 2011. Europe typically has significantly more mutual funds than the US (35,000 compared to 8,000), but these funds are also smaller. The article states that the number of fund closures in the US are also on the rise, but not at the same pace as in Europe. In the first half of 2012, 207 funds closed in the US compared with 330 launches.
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