A mutual fund is defined as an investment company which pools fund from shareholders and investors to invest in various securities, including stocks, bonds, and money market instruments, among others. The Philippine mutual fund industry has undergone several developments since its inception in the 1950s. The industry has seen significant growth in terms of the number of investors and number of accounts as well as in terms of the level of professionalism and sophistication in the sector. Despite these developments in the industry, the mutual fund industry still lags behind its counterparts in the pooled investment funds category, particularly from Unit Investment Trust Fund (UITF) and Variable Unit Linked (VUL) insurance available in the market. Thus, it is worthwhile to look at the sector more closely from the perspective of the players within the industry as well as from the retail investors’ point of view. The general objective of this research is to assess the status, problems, and prospects of the mutual funds sector in the Philippines. Specifically, the research sought to assess the supply and demand sides of the sector by examining the market landscape through the industry players and the awareness and perception of the retail investors. Results indicate that the industry is being dominated by two large players, namely, BPI Asset Management and Sun Life Asset Management, Inc. Furthermore, money market fund has the largest share in the total Asset-under-Management for both domestic- and foreign-denominated mutual funds. On the demand side, the major issue was the investment rate among the respondents towards mutual funds. Furthermore, students are perceived to have the lowest level of understanding of mutual funds. This low level of understanding of mutual funds explains the low penetration or investment rate among this group of respondents. With regard to the socially responsible mutual funds, the level of understanding among retail consumers is still low, resulting in low anticipation of demand from the mutual fund managers. In order to address the current challenges in the industry, several strategies must be put into place. These include enhancing the accessibility of mutual funds by using digital platforms and financial technology, partnerships with private companies and government through a guaranteed investment plan, education-drive to increase awareness among the young population, and provision of innovative and differentiated products.