Mutual fund inflows have grown significantly over the last two years. Would you attribute this to the push towards financialisation of savings or is it more about recognising the potential of MF products across investment needs?
Favourable demographics, rising income levels and a burgeoning affluent middle class have provided a strong customer base for the industry. We have seen investors moving towards evolved financial assets from passive ones. Over the last two years, the industry AUM (assets under management) has grown to 23% of bank deposits from 10%. The government’s push towards financialisation of savings through various initiatives as well as Mutual Fund Sahi Hai campaign by Amfi (Association of Mutual Funds of India) has led to this impressive growth. The growth can also be attributed to evolved products, digitalisation and ease of doing transactions.