The mutual fund industry aims four-fold rise in its AUM to reach Rs.100 lakh crore from Rs.25 lakh crore. The industry also aims to increase customer base to 10 crore unique investors from 2 crore unique investors in the next 10 years, says a vision document released by AMFI and BCG.
The report has recommended that the industry should increase the distribution force to at least 4 lakh and leverage outreach of existing distribution networks such as regional rural banks and post offices to achieve this target. The report has also recommended that the industry should ease onboaring process of new investors and offer simpler products to investors to increase its penetration.
The report was released at AMFI AGM held today in Mumbai. Ajay Tyagi, Chairman, SEBI released the vision document and AMFI CRISIL Mutual Fund Fact book, which puts out key trends in the Indian MF sector.
Addressing the fund officials, Ajay Tyagi, Chairman, SEBI said, “I compliment the role played by each of the Indian mutual fund players towards the growth of the industry. This has also led to mutual funds becoming the preferred mode of Investment and helping in financialization of household savings. Given that Indian MF industry has a long way to go in terms of reaching out to investors across the country, it is now imperative for each segment within the MF houses to be proactive in exercising self-restraint, have better self-regulation and ensure better risk management to take the MF Industry to the next level of growth and development.’’
Nimesh Shah, Chairman, AMFI said, “The Rs.100 trillion MF AUM opportunity would ride on the government’s ambitious objective of transforming India into a USD 5 Trillion economy, which is also now increasingly finding rising global resonance and support, in addition to inherent robust self-propelled growth prospects.”
NS Venkatesh, Chief Executive, AMFI said, “It is indeed heartening to note that Indians are increasingly moving away from physical savings to financial savings. However, the realization that to beat inflation they will have to change from traditional saving options to equities and mutual funds is happening at a much slower pace. While AMFI’s investor awareness campaign, ‘Mutual Funds Sahi Hai’, is a step in that direction and has met with encouraging success, we are preparing for a concerted strategy that would over time help the saver community across the country to gradually depart from traditional and financially-inferior ingrained attitudes and habits.”
