The mutual fund penetration of India is 12% of the total GDP.
India's AUM to GDP ratio is comparable to that of China but lags significantly behind western countries, AMFI chairman Nilesh Shah said at the CII Mutual Fund Summit 2021 on Friday.
Speaking at the event, Shah said that the success of the industry would depend on how it brings lower income group and those at the bottom of the pyramid to the MF fold.
Highlighting the challenge, he said, "One of the biggest challenges faced by the industry will be how fund managers navigate the volatile market and generate alpha."
ED and CEO of Nippon Life India Mutual Fund, Sundeep Sikka said Indian asset management industry has huge untapped potential and is headed towards a growth trajectory. "As the market bounced back, industry witnessed an optimistic sentiment through an evolved digital and technological ecosystem. The non-traditional investment products increased access to the growing investor base," he said.
Further, he highlighted the importance of leveraging technology to take the industry ahead.
Former Chairman of Sebi, M Damodaran, stressed on the importance of inclusive growth. "If a small segment of society grows, it is not sustainable growth and it sets in motion tensions, frictions that could stress and possibly break the system," he said.
