‘Digital drive, retail surge to power MFs’ next leg of growth’

Even after growing ata blistering pace over the past decade, India’s mutual fund (MF) industry believes it still hasa long runaway for long-term expansion.

- BS REPORTER

Atthe Business Standard BFSI Insight Summit 2025, industry leaders said that rising investor participation, digital adoption, and continued faith in systematic investment plans (SIPs) will propel MEFs into the next phase of growth — one marked by deeper retail penetration and greater investor sophistication.

“We have been growingata rapid pace of around 24 percent,” said DPSingh, deputy managing director and joint chief executive officer (CEO), SBI Mutual Fund, during a panel discussion moderated by Samie Modak of Business Standard.

“Even if we grow by 20 per cent going ahead, the industry will double in fouryears. So, putting a target of %100 trillion assets under management (AUM) is anybody’s guess — it will happen soonerthan later,’ Singh said.

Navneet Munot, managing director (MD) and CEO of HDFC Mutual Fund, said India’s MF journey hasbeen built on strong foundations butneeds to go further in building investor confidence.

“We take pride in being one of the most transparent industries in the world,” he said, adding: “The growth so far has come on the back of four Ts — track record, transparency, technology and training. Now we must build the fifth T, which is trust.”

While the industry’s assets are less than one-fifth of India’s gross domestic product (GDP), compared with over 80 per cent in the US, Munotsaid that only underlines the scope ahead.

“Every time we have projecteda number for the industry, it has done better. The long-term story remains intact,” he said.