Indian mutual funds may be at the cusp of massive growth cycle; this AMC remains Citi’s top pick

India’s mutual fund industry might be sitting right at the beginning of a massive growth cycle, analysts at Citi Research say. The penetration of mutual funds in India remains low when compared to global peers, leaving abundant ground for various asset managers to cover. “India’s AMCs should deliver healthy (~15%) AUM/profit growth in the long term, given a large untapped base of savers and high operating leverage – a view reinforced by our analysis of the performance seen in other countries at a similar point in the industry cycle,” a recent note by Citi Research said.

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