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AMFI expects CAGR growth of 26% in mutual fund industry

Updated : August 29, 2019 05:03 PM IST

The Association of Mutual Funds in India (AMFI) on Thursday said it expects compound annual growth rate (CAGR) growth of 26 percent in the mutual fund industry.

AMFI in association with BCG has released a 10-year vision document which targets a four-fold increase in assets under management (AUM) to Rs 100 lakh crore from about Rs 25 lakh crore currently as well as a five-fold increase in the investor base to 10 crore from about 2 crore individual investors at the moment.

In an interview to CNBC-TV18’s Sumaira Abidi, NS Venkatesh, chief executive officer, said distribution outreach is one the key areas to focus, "Essentially the investor reach has to be improved. From two crore current unique investors, we need to take it to at least ten crore investors. We need to work hard, we need to be on the ground to bring that. So, we need to bring in the distribution capability." 

“We also need to ensure that we give the right products to the customer”, Venkatesh added.

"The T30 is currently contributing somewhere around 85 percent to the overall AUM and B30 is contributing somewhere around 15-17 percent of the AUM. The wealth of this country is in Bharat. Currently, we are doing it in metros and tier I cities, can we move it from India to Bharat? That is one thing which we are looking at,” he said.

Speaking about the SIP disruption, Venkatesh said, “We need not have a big disruption. SIP itself is a disruption which has happened. Can we build on the SIP disruption in a much better way of using technology? That is where we partner with financial technologies. Already Paytm, Zerodha and all those people are coming together so that we can widen and broaden that network."
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