MF AUM has potential to reach 50% of GDP in 20 yrs: Amfi CEO

The Association of Mutual Funds in India (Amfi), which has been instrumental in driving mutual fund (MF) awareness, completes 30 years this month. Amfi Chief Executive Venkat Nageswar Chalasani believes the industry body has played a pivotal role in popularising MFs and ensuring transparency and high governance standards at asset management companies (AMCs). In an interview with Abhishek Kumar in Mumbai, he says there is still more to do as the industry grows. Edited excerpts:

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What are the key achievements of Amfi in these three decades?

■ MFs have come a long way in these years—from being a niche product to becoming mainstream. Amfi has been instrumental in spreading awareness. Secondly, we have strengthened systems, processes and risk controls. As a result, trust and transparency are now a hallmark of the industry. Investors can see, on a daily or monthly basis, the net asset values (NAVs), where exactly their money is invested, what risks exist, and the returns being generated. Also, we have put in place a robust code of conduct for both distributors and our members, which has helped strengthen professionalism and accountability. In addition, Amfi has played an important role in policy advocacy, serving as an effective bridge between the industry and regulators.

Over the years, there have been talks of Amfi evolving into a self-regulatory organisation (SRO). Is that a possibility?