The AUM of the mutual fund industry can grow to Rs.40 lakh crore in the next five years, says C V R Rajendran, CEO, AMFI.
He also expects that the unique investor count would double from the current 1 crore to 2 crore by FY 2020-21.
Striking an optimistic note on the growth prospects of the industry, he said that MF industry is likely to grow at a CAGR of 25%. He expects that the retail investor base would grow due to increasing awareness about mutual funds. Also, additional inflows from pension fund managers and EPFO will provide a fillip to the industry, he said.
Rajendran is of the view that the MF industry can leverage investor awareness program to achieve a sustainable growth. “The two basis points which SEBI has asked AMCs to invest in IAPs is a great opportunity. I think AMCs should implement their IAPs in a more structured manner. A young professional may have different goals as compared to a retired person. Thus, fund houses should tailor their IAPs to suit the different goals of investors.”
Based on the current industry size, AMCs roughly have Rs.220 at their disposal to spend on IAPs. So far, AMCs have conducted 11,095 programs in 216 cities covering more than 4 lakh participants this year.
Rajendran took charge as the new AMFI CEO on September 16.
