Indian asset management companies (AMCs) are showing strong growth potential as the 'underpenetrated' mutual funds (MFs) continue to grow their share in household savings, Nomura said on Tuesday.
The brokerage said increasing retail participation and the resultant momentum in systematic investment plan (SIP) inflows are key tailwinds for the sector.
It expects the assets under management (AUM) of MFs to grow at a compound annual growth rate (CAGR) of 18 per cent over the next five years.
The MF AUM - as a percentage of nominal GDP - which is around 18 per cent now, is expected to increase to 26 per cent by the financial year 2030, according to Nomura. The decrease in margins owing to growing AUMs is unlikely to hit profitability, it said.
Bu hikaye Business Standard dergisinin October 10, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin October 10, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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