'MF industry to grow at 30% to Rs 9.50 lakh crore by 2010'
The mutual fund sector would grow at compound annual rate of 30 per cent in next three years to become Rs 9,50,000 crore industry, industry body Assocham predicted from a survey on its growth.
By PTI |
NEW DELHI: The mutual fund sector would grow at compound annual rate of 30 per cent in next three years to become Rs 9,50,000 crore industry, industry body Assocham predicted from a survey on its growth.
The industry has grown at 25 per cent between 1999 and 2007 to stand at Rs 4,67,000 crore and the trend would improve as MFs are becoming a preferred choice for both rural and urban retail investors. This would contribute to the growth of the MF industry, the chamber said in its survey on 'MF Growth Patterns'.
The share of privately managed MF players in the total MF industry is expected to fall to 70 per cent from the current estimation of 82 per cent. The reduction would result from the alliance of the private sector with overseas partners, it said.
The public sector share in the industry would go up nearly 20 per cent from 10 per cent now. Similarly, the share of joint sector would also rise to about 10 per cent from 8 per cent currently.
The chamber said the country's MF industry is 100 times behind that of the US where the size of the industry is at staggering $12 trillion.
In India, MF industry manages nearly 700 schemes against 12,000 schemes handled by the US MF industry.
Assocham said market penetration in MF industry would more than double by 2010 from about 4 per cent now. This rate is, however, 49 per cent in the US and 20 per cent in the UK. MFs in India are now focussed on enhancing their reach to cities other than the metros, it said.
The industry has grown at 25 per cent between 1999 and 2007 to stand at Rs 4,67,000 crore and the trend would improve as MFs are becoming a preferred choice for both rural and urban retail investors. This would contribute to the growth of the MF industry, the chamber said in its survey on 'MF Growth Patterns'.
The share of privately managed MF players in the total MF industry is expected to fall to 70 per cent from the current estimation of 82 per cent. The reduction would result from the alliance of the private sector with overseas partners, it said.
The public sector share in the industry would go up nearly 20 per cent from 10 per cent now. Similarly, the share of joint sector would also rise to about 10 per cent from 8 per cent currently.
The chamber said the country's MF industry is 100 times behind that of the US where the size of the industry is at staggering $12 trillion.
In India, MF industry manages nearly 700 schemes against 12,000 schemes handled by the US MF industry.
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Assocham said market penetration in MF industry would more than double by 2010 from about 4 per cent now. This rate is, however, 49 per cent in the US and 20 per cent in the UK. MFs in India are now focussed on enhancing their reach to cities other than the metros, it said.
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