Reliance Capital Asset Management said that the Indian mutual fund industry is expected to grow to Rs. 2,000 billion by 2020 on account of regulatory changes and shift in investors’ savings pattern.
At present, Reliance Capital has about 12% market share in the mutual fund industry, which is considered to be around Rs. 7.53 trillion. Currently, bank deposits comprise approximately 56% of the total financial household savings. Reliance Capital expects that about 10% of bank investors will shift to mutual funds by 2020.
The shift from physical assets (like gold) to financial assets (like gold ETF and funds) would contribute about Rs. 900 billion to the mutual fund industry. Due to the change in regulatory environment to manage pension and insurance assets, the AMC industry expects an increase of 2%-7% in the overall growth of the sector. This could add to about additional Rs. 7 trillion in the next 5-7 years for the industry, Reliance Capital added.