Future of Mutual Funds in India
Future of Mutual Funds in India - An Overview
Financial experts believe that the future of Mutual Funds in India will be very bright. It has been estimated that by March-end of 2010, the mutual fund industry of India will reach Rs 40,90,000 crore, taking into account the total assets of the Indian commercial banks. The estimation was based on the December 2004 asset value of Rs 1,50,537 crore. In the coming 10 years the annual composite growth rate is expected to go up by 13.4%. Since the last 5 years, the growth rate was recorded as 9% annually. Based on the current rate of growth, it can be forecasted that the mutual fund assets will be double by 2010.
Indian Mutual Funds Future - Growth Facts
- In the past 6 years, Mutual Funds in India have recorded a growth of 100 %.
- In India, the rate of saving is 23 %.
- In the future, there lies a big scope for the Indian Mutual Funds industry to expand.
- Several asset management companies which are foreign based are now entering the Indian markets.
- A number of commodity Mutual Funds will be introduced in the future. The SEBI (Securities Exchange Board of India) has granted the permission for the same.
- More emphasis is put on the effective Mutual Funds governance.
- There is also enough scope for the Indian Mutual funds to enter into the semi-urban and rural areas.
- Financial planners will play a major role in the Mutual Funds market by providing people with proper financial planning.
Future of Indian Mutual Funds- Conclusion
Looking at the past developments and combining it with the current trends it can be concluded that the future of Mutual Funds in India has lot of positive things to offer to its investors.