India's mutual fund sector is witnessing a new wave of equity participation. So far during this financial year (April-July), industry has added nearly 3 million equity folios, at an average of 750,000 a month.
This is the highest pace of account additions since 2007-08. During 2007-08, just ahead of the financial crisis, the industry added an average million equity accounts a month.
If the current pace of account additions in the equity segment continues unabated, the current financial year may end up adding nine million equity folios, taking the overall equity accounts to a massive 50 million. Union Bank of India has signed an in principle agreement with Dai-ichi Life Insurance company for selling 40% stake in the asset management company that is wholly owned by the bank.
Speaking to media soon after the board meeting, Rajkiran Rai, managing director of the bank said that board has given "approval to partner with Dai-ichi. The details are yet to worked out"
