Introduction
The global mutual fund industry has seen significant transformation over the last decade, driven by various factors such as technological advancements, changing investor preferences, regulatory reforms, and the rise of sustainable investing. These shifts have had profound implications on the mutual fund industry in India, where the market has experienced rapid growth. As India integrates more closely with global markets, understanding the latest developments, trends, and challenges in the global mutual fund industry is essential for stakeholders. This article delves into these aspects, providing insights into how the Indian market can align itself with global best practices while addressing its unique challenges.
Global Trends in the Mutual Fund Industry
1. Sustainable and Responsible Investing: Globally, there is a growing emphasis on Environmental, Social, and Governance (ESG) factors as key criteria for investment decisions. According to the Global Sustainable Investment Alliance, assets under management (AUM) in sustainable investments have grown exponentially, particularly in Europe and North America. This trend is gaining momentum in India, where several Asset Management Companies (AMCs) have launched ESG-focused funds. The integration of ESG criteria not only meets the demands of socially conscious investors but also aligns with the long-term sustainability goals of companies.
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