Some facts of the growth of mutual funds in India
100% growth in the last 6 years.
Numbers of foreign AMC’s are in the queue to enter the Indian markets like FidelityInvestments, US based, with over US$1trillion assets under management worldwide. •
Our saving rate is over 23%, highest in the world. Only channelizing these savings inmutual funds sector is required. •
We have approximately 29 mutual funds which are much less than US having morethan 800. There is a big scope for expansion. •
'B' and 'C' class cities are growing rapidly. Today most of the mutual funds areconcentrating on the 'A' class cities. Soon they will find scope in the growing cities.
Mutual fund can penetrate rural areas like the Indian insurance industry with simple andlimited products. •
SEBI allowing the MF's to launch commodity mutual funds.
Emphasis on better corporate governance.
Trying to curb the late trading practices.
Introduction of Financial Planners who can provide need based advice.
FUTURE OF MUTUAL FUNDS IN INDIA:
By December 2004, Indian mutual fund industry reached Rs.1, 50,537 crore. It isestimated that by 2010 March-end, the total assets of all scheduled commercial banksshould be Rs. 40, 90,000 crore. The annual composite rate of growth is expected 13.4%during the rest of the decade. In the last 5 years we have seen annual growth rate of 9%.According to the current growth rate, by year 2010, mutual fund assets will be double. Aggregate deposits of Scheduled Com Banks in India (Rs.Crore) Month/YearMar-98Mar-00Mar-01Mar-02Mar-03Mar-04Sep-044-Dec
Change in %over lastyr
15141312-183Mutual Fund AUM’s GrowthMonth/YearMar-98Mar-00Mar-01Mar-02Mar-03Mar-04Sep-044-DecMF AUM's6898493717831319401775306137626151141149300Change in %over lastyr261312254591 Source - AMFI
REASONS FOR SLOW GROWTH OF MUTUAL FINDS IN INDIA:
Indian society is represented by...
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