MF sector ‘to touch’ Rs 20 lakh cr
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The mutual fund industry is likely to touch Rs 20 lakh crore by 2020 against the present Rs 7 lakh crore, given the slew of measures announced by capital market regulator Sebi and the finance ministry, Reliance Capital Asset Management (RCAM) president and CEO Sundeep Sikka said here today.
Sikka spoke at the launch of Portfolio Slip, a systematic investment plan catering to retail investors for investing in different asset classes.
He said that due to the change in regulatory environment to manage pension and insurance assets, the AMC industry is expected grow 2-7 per cent, adding additional Rs 5-7 lakh crore in the next 5-7 years for the industry.
Though 56 per cent of the total financial household savings are invested in form of bank deposits, RCAM expects that "about 5-10 per cent of bank investors will shift to mutual funds during next 7-8 years", he added.
RCAM has 12 per cent market share in the mutual fund industry and the shift from physical assets like gold to financial asset like gold ETF would contribute about Rs 60,000-90,000 crore to the industry, he said.
Earlier, Sebi had announced a slew of measures to revive the mutual fund industry and incentivise retail investors and the fund houses to expand.
Commenting on the measures announced, Sikka said, "This is the most forward-looking road map laid down by any regulator", while adding that now it is now for the AMCs to push the growth in the industry.
The correspondent's visit to Dubai was sponsored by Reliance Capital