MF asset base may rise to Rs 20 trillion in next 4-5 years: AMFI

Industry body AMFI says total asset base of mutual funds could reach Rs 20 trillion in the next 4-5 years from about Rs 9.85 trillion currently.

According to AMFI, there is huge scope for expanding the reach of mutual funds and channelising household savings into them.

"Mutual fund industry may see its assets under management (AUM) growing to Rs 20 lakh crore in the next 4-5 years," Association of Mutual Funds in India (AMFI) Chairman Sundeep Sikka told PTI.

The collective AUM of 45 fund houses stood at about Rs 8 lakh crore at the end of 2013 and has grown to Rs 9.85 lakh crore during the first quarter of the current fiscal.

However, the asset base of mutual funds together had touched a record Rs 10.11 lakh crore in May.

The likely impressive growth in AUM to Rs 20 lakh crore would be accompanied by an increase in folio numbers, substantial contribution from smaller cities and a higher number of distributors, among others, it said.

Growth in the mutual fund industry has remained sluggish in the past couple of years although the capital markets regulator Sebi has taken several measures to re-energise the sector.

In February, board of Securities and Exchange Board of India (Sebi) cleared the first ever long-term policy for the mutual fund industry, proposing a number of tax benefits and measures for growth of this business.

Besides, Sebi, in 2012, allowed mutual funds to levy additional charges on existing schemes to bear the cost of distribution across locations beyond the top 15 cities in the country.

According to an estimate, over 44 per cent of households in the US have their savings in mutual funds, while in India the figure stood at a mere 2.5 per cent.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Regional parties that brought diversity to Indian democracy are at a dead end

    In the two decades, which began in 1989, when the paradigm of coalition politics came to dominate central governments, it would have sounded far-fetch

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Kuruvilla Pandikattu SJ

What we can learn from agnosticism

As an agnostic, the American writer David Breeden is aware ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture