MFs have added `3 trillion to reach `11 tn this year
Fighting all adversities and a tougher regulatory regime, mutual funds are headed for a cash-rich 2014 with an estimated addition of about Rs three lakh crore to its asset base to become a Rs 11-trillion market. Helped by a smart rally in the equity market, the mutual funds' assets under management hit a record high of Rs 10.96 lakh crore in October itself and has remained near Rs 10.9 lakh crore as the year draws to a close. Fund houses are upbeat about the industry performance for the next year as equity markets are expected to continue to deliver making the segment attractive.
"2014 witnessed significant milestones for the mutual fund industry, with assets growing 32 per cent to around Rs 11 lakh crore as on November," industry body AMFI's Chairman and top fund house Reliance Mutual Fund's chief Sundeep Sikka said.
The number of investors have also grown substantially this year, Sikka said, while adding that a rally in markets and improving economic indicators are expected to result in a much more broad-based participation in 2015. especially among retail investors.
"The next year (2015) will be a very good year for the mutual fund industry," JP Morgan AMC Managing Director and CEO Nandkumar Surti said.
HSBC Global Asset Management India CEO Puneet Chaddha said :"We are currently in a sweet spot wherein equity markets are expected to continue to deliver over the medium term making the segment attractive."