Mutual fund sector likely to see double-digit growth in FY19

ICICI Prudential Mutual Fund today said it was expecting the industry's assets under management (AUM) to grow in the low double digits in the current fiscal.

"The AUM of the mutual fund industry in FY18' has grown by 27 percent to $355 billion. This year, there will be some slowdown but expected to grow in low double digits," ICICI Pru MF Fund Manager Mittul Kalawadia said.

Till May 2018, the total AUM of the mutual fund industry was at $335 billion.

Kalawadia said that in the 2018-19 fiscal, the market will remain volatile, due to macro-economic factors, both at the domestic and international levels.

The pharma and healthcare sectors were expected to do better in the long-term, he said.

In order to tap this opportunity, it has launched the ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund.

The equity scheme will invest in pharma, healthcare, hospitals, diagnostics and insurance sectors. The NFO opened for subscription on June 25 and will close on July 9.

Kalawadia said correction in the pharma sector since the last three years is close to bottoming out, as issues related to the US FDA are being addressed.