Three-quarters of investors have a favorable opinion of mutual funds, according to Investment Company Institute's 2005 shareholder sentiment survey. Favorability in the new study improves on the 71% in 2003 and 74% in 2004, as respondents had a higher opinion of mutual funds than of brokerage firms, insurance companies and credit card companies.

The survey also revealed that nearly 75% of respondents say fund performance is a "very" important factor in shaping their views, while almost 90% of mutual fund investors feel either "very" or "somewhat" confident that investing in mutual funds will help them read their financial goals.