The Association of Mutual Funds in India (AMFI) Chief Executive N S Venkatesh believes that country’s macro economic indicators such as inflation and fiscal deficit are favourable for economic growth.
“In 2018 we are much more resilient because our macro-economic fundamentals are very much in favour of the economy. India’s fiscal deficit and inflation are in control. The balance of payments is manageable at 2.8 percent to the GDP,” he said.
Venkatesh sounded optimistic about India’s economic growth as he believes that India will be among the top 3 economies in the world over the next five to seven years.
“ We have beaten a lot of developed economies, but we are still called emerging economy,” he said.
Venkatesh was addressing a gathering of independent financial advisors (IFAs) and wealth managers at Wealth Management Convention 2018 held in Mumbai on November 21.
He further said that there is ample opportunity to tap in the investment space for advisors.
“The total folio of the mutual fund industry is at 7.69 crore, but the unique folios are merely 1.79 crore PAN (Permanent Account Numbers). Across India there are 30 crore PAN cards, of which we have just tapped 1.79 crore,” said Venkatesh.
He feels there is demographic advantage in India as the working population is more than the retired population.
At the same time, Venkatesh applauded the fact that advisers are not only advising investors to hold on to investments during volatile markets but also asking to increase their investments.
The matured behaviour of investors is indicated from the increase in the number of folios, systematic investment plans (SIPs), equity inflows and AUM, Venkatesh said.
The asset base rose of Mutual funds' rose to Rs 22.23 lakh crore by October-end, a slight increase of 1 percent from the preceding month, as the industry showed resilience despite the recent market events like IL&FS default.
Venkatesh said the industry showed resilience despite recent market events and the ensuing volatility in both debt and equity segments.
He further said that retail inflows showed a healthy improvement of almost 30 percent over the last month.
Besides, SIPs continued to show an upward trend with a contribution of Rs 7,985 crore last month as against Rs 7,727 crore in September.
Overall, the industry has witnessed an inflow of Rs 35,529 crore last month as against an outflow of Rs 2.3 lakh crore in September, which market participants attributed to nervousness among corporate investors following the IL&FS default.
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