The trajectory for the growth of the Indian MF industry is very clear, said Nirmal Jain, Founder, and Chairman, IIFL Group, during an interview.
Our country’s strong economic growth and growing financialization of savings would help in the growth of India’s AMC industry, said Mr. Jain.
The AMC business has a very bright future in the next 5 to 10 years. The asset management industry can be one of the fastest growing industries or segments in the financial services sector in the next 10 years, Mr. Jain said to BloombergQuint in an interview.
HDFC Mutual Fund is one of the best stocks in the sector and the company deserves whatever premium it has earned, commended Jain. He also attributed the company’s strong listing to various factors such as competent management team, management’s tremendous track record, the industry’s prospects, and the brand value.
However, he also feels that the Indian MF and asset management industry have to grow, as most of the developing countries in the world have witnessed their AMC industry grown to a much larger proportion of their GDP when compared to that of India.
Because of demonetization, money has to come to financial securities and financial instruments. Within financial instruments, equity and debt mutual funds provide better protection from inflation when compared to bank fixed deposits. The mutual fund industry makes efforts to reduce the cost and gives much better returns over any time period.
SIPs (Systematic Investment Plans) is the right way as the investors can earn every month and save every month, advised Jain.
The U.S mutual fund industry which is about 16 trillion Dollars at present was only 200 billion Dollars 30 years ago. Now, the Indian MF industry is about 300 billion Dollars plus. The Indian AMC industry could excel the trillion-dollar milestone in the following 10 years, said Jain, according to Bloomberg.
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