Mutual Fund Industry Asset Growth

Industry is heading toward Direct plans 

Digital has taken centre stage in Mutual Fund Industry, online modes of Investment retained as a popular option among tech savvy Investor. India’s middle class, HNI and HNWI population are growing at rapid pace, as expected next decade of Global growth momentum are expected to be driven by Asia continent and India’s and China will lead this growth. India’s large cities are contributing to growth in higher asset allocation towards Mutual Fund Industry. 

Mutual Fund Industry are heading towards mammoth growth 

India is yet to realise its full potential of Mutual Fund Industry, as assets under management are just 12 percent of India’s GDP, whereas the global average is 63 percent. In the coming decade India’s Mutual Fund Industry are heading towards mammoth growth to cater to one of the fastest growing middle, HNI and HNWI. India’s GDP growth expect to grow in double digit this year as per IMF forecast, and becoming one of the fastest growing economy in the coming years. Mutual Fund Industry adoption to Digital transformation will augment its contribution to India’s GDP above 30 percent in the coming years. 

How top-ten distributors did in 2020-21 

In recent years, MF distributors have been seeing their earning decline. In 2018-19, their earning has declined by seven percent to Rs 7,948 crore. In 2019-20, their earnings has declined by another 22 percent to Rs 6,148 crore. 

Decline Distribution Income trend are visible among top players in the market barring NJ IndiaInvest and State Bank of India.