MF industry likely to double investor base in next 3-years

As per industry estimates, less than 3 percent of the country's population invests in mutual funds.

"Markets are at an all-time high as MF AUM are at Rs 18 trillion and equity returns have multiplied the portfolio 28 times in past 20 years, proving to be a sound investment option for investors," Reliance Mutual Fund executive director and chief executive, Sundeep Sikka told PTI.

"However, the growth in MF folios has been muted at around 2 percent CAGR in last 5 years. We see this increasing aggressively through industry initiatives like Mutual Fund Day," he said.

He was speaking on the sidelines of launch of the Mutual Fund Day initiative that encourages investors to mark 7th of every month as a date for making investments in mutual funds.

He said that the industry may see the investor base doubling in next three years.

"We expect the investor base to double in next three years with such initiatives," Sikka said.

According to Sikka, the industry will cross Rs 20 trillion in AUM well in advance.

"With recent policy changes and the revived investor interest in the MF sector, the industry will cross the Rs 20 trillion in AUM faster than expected," he said.

Currently the MF industry is getting Rs 4,000 crore every month only from SIPs, and we see this number rising significantly in future, he said.