Mutual funds may see a sharp drop in popularity in the coming years as investors start to explore newer products like separately managed accounts and exchange-traded funds.

Open-end mutual funds currently comprise the largest share of investment products, a 35% share of the market, according to the "Advisor Product Forecast" study by Cogent Research. But by 2009, that share could drop by 10% to 31% as advisers move their clients' assets to different products.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.