India's Mutual Fund asset base set to hit Rs 100 lakh cr by 2030

Mumbai: Mutual fund industry of the country, which has grown by five times in past one decade to Rs 32 lakh crore of AUM as of now, is now set to achieve a further milestone of Rs 100 lakh crore in next one decade.

All the 44 fund houses put together, the industry boasts of having 2.5 crore investors with 9.5 crore folios with it at present.

"If all goes well, the industry may see the number of investors growing to 10 crore in next five years", Himanshu Vyapak, MD, CIEL (Centre for Investment Education and Learning told Bizz Buzz. He was speaking on the sidelines of announcement of top eight AMCs joining hands with NSE & CIEL to create more than 50,000 new MF distributors over next 3 years.

This is being done under the aegis of ExpertMFD comprising of top AMCs who manage over 2/3rd of total AUM in Mutual Fund Industry. These are marquee names like Aditya Birla Sun Life Mutual Fund, Axis MF, ICICI Prudential MF, L&T MF, Nippon India MF, SBI Mutual Fund and Sundaram MF who have joined hands with NSE (National Stock Exchange) and CIEL (Centre for Investment Education and Learning).

To achieve our goal, we are targeting retired professionals, BFSI employees.

Out of 1 crore students, who pass out every year, 10-20 per cent want to become an entrepreneur. And we are targeting those students too, Vyapak said.

Currently there is just one distributor for every 17,000 people, indicating a massive growth opportunity for insurance agents, retired BFSI professionals, homemakers, BFSI employees, students etc. Top individual MF distributors earn more than Rs 1 crore in annual gross commissions, showing the potential for earnings.

NSE will be the transaction partner for a seamless digital experience to start business Mukesh Agarwal CEO, NSE Indices–NSE said, "This strategic partnership between top AMCs and CIEL will create unique possibilities to promote the distribution of Mutual Funds to the large Indian population.

In spite of the tremendous growth in assets under management 3X in past 6 years and 5X in past 10 years, our country still remains under penetrated with only 2 per cent of population investing in mutual funds. Mutual fund AUM, as a percentage of bank deposits is still 18 per cent; India has assets under management (AUM) to GDP ratio of only 12 per cent. The world average AUM to GDP ratio is at 63 per cent with developed markets such as the US and Canada at 120 per cent and 81 per cent.