Mutual fund industry wants new government to act on consumption, investment

Asset managers on Thursday said Prime Minister Narendra Modi should focus on ways to boost investments and the "soft" private consumption.

The industry welcomed Modi government's second term, saying it will ensure policy certainty.

"... market will focus on steps taken by the government to encourage investment and give push to consumption, which is hitting a soft patch," said Nilesh Shah, Managing Director and Chief Executive, Kotak Mutual Fund. He added that the voters have shown "maturity" in voting the same government, which will rule out any policy uncertainty.


Mutual fund industry body Amfi's Chief Executive N S Venkatesh said he expects the political stability to drive pro-reform economic agenda. "We now look forward to the new government creating a conducive investing environment for the financial asset class."

The new government will have to "deftly" handle issues like rising oil prices and global trade wars, said Lav Kumar, Head of Product and Business Development, LIC Mutual Fund. He added reforms in various sectors will gain pace and the growth rate will also accelerate.