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MF industry has witnessed tremendous growth over the last 5 years. This was due to a confluence of many favourable factors – market rally, AMFI MF sahi hai campaign etc. How can the industry sustain this growth and ensure that this momentum remains intact?
The continuation of financialization of household savings, sustained economic growth and earnings outlook along with steady market growth will continue to attract investors towards the equity market.
What are the main opportunities and challenges for the MF industry in the upcoming year?
The new asset class is a big opportunity for the MF industry. It gives opportunities to invest in sophisticated and innovative products at a lower ticket size. Besides this, the growth of SIP book is also an opportunity for the industry.
As far as challenges are concerned, increase of distributor base, penetration of mutual funds into smaller locations and increase in unique investors are some major challenges.
Despite volatility in the markets, SIP inflows have still been high. Do you see this trend continuing?
I think the investors have matured and will continue their allocation in the market through SIPs despite market volatility. The growth maybe slower than what we have seen in the last few years but it will still continue to grow.
What are your aspirations for 2025? Share with us a few initiatives to strengthen your business.
We (Motilal Oswal MF) are looking to launch new high growth thematic funds in the upcoming year. Besides this, we are investing in our sales team, increasing our number of branches and looking to grow our distribution and investor base.
We are also trying to become one of the first AMCs to enter the new asset class SIF.
What is your expectation from regulation in 2025?
I think the regulators have been supportive to the industry. I have no particular expectations from them. The regulator has also given the industry a new area to grow with the new asset class.
What would be the key message you would like to give to your distribution partners for 2025?
It is a huge opportunity for growth. The distributors will be the focal point for the industry as they are the ones who bring in new and long term investors to the mutual fund industry. The distributors should focus on adding new investors and have outlook for growth and learning. I hope they will continue to add value to investors and contribute to the growth of the mutual fund industry.
