The rise is seen on the back of the increased distribution strength and reach, according to A Balasubramanian, Chairman, AMFI
Association of Mutual Funds of India (AMFI) expects the mutual industry’s assets under management to grow by almost five-fold to Rs 94 trillion by FY25 on the back of the increased distribution strength and reach, according to A Balasubramanian, Chairman, AMFI.
As on end of February 2018, the asset base of 43-player mutual fund industry stood at Rs 22.2 lakh crore.
“We expect industry AUM to touch Rs 94.5 lakh crore by FY25 and this forecast is based on the past five years' average growth of the industry,” Balasubramanian said.
"Even if the industry grows at the current rate of 23 percent per annum, it can easily achieve this number," Balasubramian said, who is also chief executive officer of Birla SunLife Mutual Fund.
He said even if the industry grows at a 5-year average growth rate, it will easily touch this milestone.
He said joint efforts of SEBI, AMFI fund houses and distributors will drive this growth for the industry.
Bala also said that during the last one year mutual fund industry witnessed AUM growth of 25 percent, or Rs 4.25 lakh crore.
During the same period, the total number of folios and SIP accounts saw a growth of 26 percent, or Rs 1.08 crore, and 52 percent (70 lakhs), respectively, while the monthly SIP contribution for the industry touched Rs 6,425 crore from 2.05 crore SIP accounts.