GDP rate of Indian mutual fund assets under management held 12%
The domestic mutual fund industry ought to develop a high system with a current AUM exceeding Rs. 30 trillion. Anyhow, some of the mutual fund distributors felt that it still has tremendous growth potential as it has almost scraped the surface when it comes to Assets Under Management growth.
Further, the GDP rate of Indian mutual fund assets under management stood at 12%. It remains among the lowest and a fraction of the global average of 63%.
On the other hand, the smaller developing market peers like Brazil and South Africa possess better penetration. Moreover, the brokerage estimates industry AUM to grow at a compound annual growth rate (CAGR) of 13% between FY22 and FY24.
Further, the Equity AUM remains expected to post a 15% CAGR. Moreover, India’s equity AUM GDP remains at 5% as compared to the global average of 34%.
At the end of January, the Assets of equity-oriented schemes stood at Rs. 8.91 trillion. Besides, the US and Canada have equity AUM to GDP at 75% and 55%, respectively.
Indeed, even the portion of values in the family asset report is a tiny 4.30%, suggesting valid underlying freedoms. Jefferies accepts that value outpourings ought to decrease with SIPs start to get as the economy gets pace. “India has customarily been a high investment funds economy (normal 30% of GDP), however, an enormous part had been designated to actual investment funds. Henceforth, the drawn-out large-scale account stays good for India’s asset supervisors,” said a source.