When considering demand side factors, we find that wealthier countries, measured by GDP per capita, and countries with a more educated population have a larger mutual fund sector. These effects are particularly pronounced for the equity sector, which may require a higher level of investor sophistication. Internet penetration is also positively related to the size of the mutual fund sector, but it is highly correlated with the other demand size variables. In addition, the mutual fund sector is larger in countries where a larger fraction of pension plans are defined contribution plans. .
