Future of Mutual Funds In India

Abstract:

The Future of Mutual Funds In India suggests that the industry has got huge scopes of development in the times to come.

The Future of Mutual Funds In India is quite bright. Mutual Funds are one of the most popular forms of investments as these funds are diversification, professional management, and liquidity. In the year 2004, the mutual fund industry in India was worth Rs 1,50,537 crores. The mutual fund industry is expected to grow at a rate of 13.4% over the next 10 years.

Mutual Fund Assets Under Management (MF AUM)-Growth

In March 1998, the MF AUM was Rs. 68984 crores.
In March 2000, the MF AUM was Rs. 93717 crores and the percentage growth was 26 %.
In March 2001, the MF AUM was Rs. 83131 crores and the percentage growth was 13 %.
In March 2002, the MF AUM was Rs. 94017 crores and the percentage growth was 12 %.
In March 2003, the MF AUM was Rs. 75306 crores and the percentage growth was 25 %.
In March 2004, the MF AUM was Rs. 137626 crores and the percentage growth was 45 %.
In September 2004, the MF AUM was Rs. 151141 crores and the percentage growth was 9 % in 6 months time.
In December 2004, the MF AUM was Rs. 149300 crores and the percentage growth was 1 % in 2 months time.

Future of Mutual Funds In India-Facts on growth

Important aspects related to the future of mutual funds in India are -

The growth rate was 100 % in 6 previous years.
The saving rate in India is 23 %.
There is a huge scope in the future for the expansion of the mutual funds industry.
A number of foreign based assets management companies are venturing into Indian markets.
The Securities Exchange Board of India has allowed the introduction of commodity mutual funds.
The emphasis is being given on the effective corporate governance of Mutual Funds.
The Mutual funds in India has the scope of penetrating into the rural and semi urban areas.
Financial planners are introduced into the market, which would provide the people with better financial planning.