By December 2004, Indian mutual fund industry
reached Rs 1,50,537 crore. It is estimated that by 2010 March-end, the
total assets of all scheduled commercial banks should be Rs 40,90,000
crore.
The annual composite rate of growth is expected 13.4% during the rest
of the decade. In the last 5 years we have seen annual growth rate of
9%. According to the current growth rate, by year 2010, mutual fund
assets will be double.
Let us discuss with the following table:
| Aggregate deposits of
Scheduled Com Banks in India (Rs.Crore) |
| Month/Year |
Mar-98 |
Mar-00 |
Mar-01 |
Mar-02 |
Mar-03 |
Mar-04 |
Sep-04 |
4-Dec |
| Deposits |
605410 |
851593 |
989141 |
1131188 |
1280853 |
- |
1567251 |
1622579 |
| Change in % over last yr |
|
15 |
14 |
13 |
12 |
- |
18 |
3 |
Source - RBI
| Mutual Fund AUM’s Growth |
| Month/Year |
Mar-98 |
Mar-00 |
Mar-01 |
Mar-02 |
Mar-03 |
Mar-04 |
Sep-04 |
4-Dec |
| MF AUM's |
68984 |
93717 |
83131 |
94017 |
75306 |
137626 |
151141 |
149300 |
| Change in % over last yr |
|
26 |
13 |
12 |
25 |
45 |
9 |
1 |
Source - AMFI
Some facts for the growth of mutual funds in India
- 100% growth in the last 6 years.
- Number of foreign AMC's are in the que to enter the Indian
markets like Fidelity Investments, US based, with over US$1trillion
assets under management worldwide.
- Our saving rate is over 23%, highest in the world. Only
channelizing these savings in mutual funds sector is required.
- We have approximately 29 mutual funds which is much less than US
having more than 800. There is a big scope for expansion.
- 'B' and 'C' class cities are growing rapidly. Today most of the
mutual funds are concentrating on the 'A' class cities. Soon they
will find scope in the growing cities.
- Mutual fund can penetrate rurals like the Indian insurance
industry with simple and limited products.
- SEBI allowing the MF's to launch commodity mutual funds.
- Emphasis on better corporate governance.
- Trying to curb the late trading practices.
- Introduction of Financial Planners who can provide need based
advice.
