Japan, China, and Australia are the top three markets in the Asia-Pacific region when it comes to fund size, according to Lipper, the fund research firm.

Mutual funds' assets under management had risen by 18.2 per cent in the region from $1.27 trillion in the first quarter of 2009 to $1.5 trillion in the second quarter.

Japan took the lead with $359.8 billion, followed by China, which recorded $317.3 billion, then Australia with $317.1 billion. Combined, these three markets cover over 60 per cent of the region's fund assets, Lipper said.

In terms of new fund launches, Japan again ranked first in net sales with $12.4 billion for 101 new funds. China came in second with 31 funds worth $9.6 billion, followed by Thailand with 143 funds totalling $5.9 billion.

Lipper reportedly cited increasing risk appetite among Asian investors as a contributing element to the region's growth. Lipper is a Thomson Reuters company.