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Indian Mutual Fund Industry Growing Rapidly

Mar 30, 2009

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According to a new research report "Indian Mutual Fund Industry" published by RNCOS, mutual fund industry of India is growing at a rapid pace and is projected to touch mark of US$ 300 Billion by 2015.

The key to this speedy growth is the relatively higher saving pattern in India than various developed and developing nations, such as Japan, France and China, says the report.

The higher income saving pattern observed in India as compared to rest of the word is mainly because Indians are highly future-conscious. Consequently, Indians are expected to massively increase their investments in the mutual fund market because it offers broad and better investment option.

Moreover, improved regulations have imparted a better lucidity to AMCs as well as stock markets. As a result, investors are opting mutual funds as the most preferable able investment option in the country. Both widening product range serving various purposes and budding opportunities are expected to keep the Indian mutual fund industry in the similar growth track in the coming times also.

However, the report also reveals that despite immense growth potentials, limited involvement of the rural sector will prove to be a hurdle for the growth of this industry. Due to lack of awareness, inferior distribution and limited banking services in the rural regions, mutual funds are yet to gain significant recognition and acceptance in the rural markets.

In view of the aforementioned constraints, a Senior Research Analyst at RNCOS has suggested that asset management companies and banks in India should together take the responsibility of extending their reach to the rural economy. Thus, huge opportunities in this sector will assist the growth of country's mutual funds industry in future.

The research report "Indian Mutual Fund Industry" provides an extensive analysis of the Indian mutual fund industry alongwith its current and future outlook. It equips the clients with the latest market developments and potential.  The estimations and forecasts in the report are not based on a complex economic model, but provide a rough guidance to the direction of the industry's future movement.
 
The report also glances into the future of distinct segments of Indian mutual fund industry, including Population aging 65 years and above, Pharmaceutical Market (by segments) and Commercial Drugs Segment.

For more information visit: http://www.rncos.com/Report/IM142.htm


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