Research and rating agency CRISIL has predicted that the Indian MF industry will cross Rs.50 lakh crore landmark by 2025.
In a press release, Ashu Suyash, MD & CEO, CRISIL said, “Over the five years through 2025, CRISIL expects the industry’s assets to continue its double-digit growth and cross the Rs 50 lakh crore mark. Equity funds are expected to vanguard this growth trajectory with their share expected to rise from 42% today to 47%, in line with global peers. The growth triggers include India’s favourable demographics, increased financialisation of savings, an inflation-targeting regime and rising per-capita income. For this growth to sustain, independent research, data, and analytics will have to play a material role in empowering investor decisions.”
In a report released today, CRISIL said that a gradual improvement in corporate earnings, controlled inflation, stable political environment, consistent growth in mutual fund inflows and 9% growth in nominal gross domestic product (GDP) post financial year 2021 are expected to deepen mutual fund penetration. The industry’s quarterly average AUM is expected to increase at 14% CAGR from Rs.27 lakh crore in March 2020 to Rs.52 lakh crore in March 2025.
This growth is expected to be led by equity funds, which will continue to garner strong investor interest. Average equity AUM is expected to increase at 18% CAGR to Rs.25 lakh crore March 2025 from Rs.11.1 lakh crore in March 2020 driven by strong inflows. Strong growth in equity funds will increase their share in the overall fund pie from 42% to 47% by March 2025 in line with the global average, said the report.
