The market share for traditional mutual funds is expected to decline substantially over the next two years, as exchange traded funds and separately managed accounts become increasingly popular.

According to a survey of 1,266 financial advisers by Cogent Research, allocation to open-ended mutual funds, which are mutual funds that do not restrict the number of shares they can issue, will reduce from 35% of invested assets at the end of last year to 31% by the end of 2009.