MFs asset base to hit Rs 20-tn by 2018 11/05/2015

MFs asset base to hit Rs 20-tn by 2018
11/05/2015 01:38
Helped by positive market sentiments and growing interest among retail investors, mutual fund industry is tipped to achieve an investor base of 10 crore accounts in the next five years, while their asset base can touch Rs 20 crore in just about three years, said the media report. At present, the number of folios or investor accounts across the industry stands at a little over four crore, the media report added. The overall asset base of mutual funds can reach Rs 20 trillion by 2018, from about Rs 12 trillion now, top fund house Reliance Mutual Fund's CEO Sundeep Sikka told media. He said overall positive sentiments in the Indian economy, because of the government's reform initiatives and the growing confidence of retail investors would fuel the growth in asset base and folios number in the coming years. "The mutual fund industry folios number will reach to 10 crore in the next five years from four crore currently," Sikka added. The likely impressive growth in AUM to Rs 20 trillion would be accompanied by an increase in folio numbers, substantial contribution from smaller cities and a higher number of distributors, among others. Sikka, who is also the chairman of mutual fund industry body AMFI, had earlier said that the asset base will reach Rs 20 trillion mark by 2020. However, the renewed growth momentum would now help reach this target earlier by 2018 itself, he added.