PR Log - Global Press Release Distribution

Indian Mutual Fund Industry

By bharatbook.com
Dated: Aug 30, 2008

The Indian mutual funds industry is witnessing a rapid growth as a result of infrastructural development,
increase in personal financial assets, and rise in foreign participation

Indian Mutual Fund Industry

The Indian mutual funds industry is witnessing a rapid growth as a result of infrastructural development,
increase in personal financial assets, and rise in foreign participation. With the growing risk appetite, rising
income, and increasing awareness, mutual funds in India are becoming a preferred investment option
compared to other investment vehicles like Fixed Deposits (FDs) and postal savings that are considered
safe but give comparatively low returns, according to “Indian Mutual Fund Industry”.

This report provides a detailed analysis along with current and future outlook of the Indian mutual fund
industry and explores the market development and potential. The forecasts and estimations given in this
report are not based on a complex economic model, but are intended as a rough guide to the direction in
which the industry is likely to move.

Key Findings

The Indian mutual funds retail market, growing at a CAGR of about 30%, is forecasted to reach US$ 300
Billion by 2015.
Income and growth schemes made up for majority of Assets Under Management (AUM) in the country.
At about 84% (as on March 31, 2008), private sector Asset Management Companies account for majority
of mutual fund sales in India.
Individual investors make up for 96.86% of the total number of investor accounts and contribute 36.9% of
the net assets under management.

Key Issues & Facts Analyzed in the Report

What are the key factors fueling growth into the Indian mutual fund market?
Which are the fastest growing products?
What are the key growth prospects?
What are the key challenges for the market?
How the market is likely to move in future?

Key Players

This section provides business analysis of key players in the Indian mutual fund market, including
Reliance Capital, BOB and HDFC.

Research Methodology Used

Information Sources
Information for this report has been sourced from books, newspapers, trade journals, white papers, industry
portals, government agencies, trade associations, monitoring industry news and developments, and through
access to more than 3000 paid databases.

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Analysis Methods
The analysis methods used in this report include ratio analysis, historical trend analysis, linear regression
analysis using software tools, judgmental forecasting, and cause and effect analysis.

Table Of Contents:

1. Analyst View
2. Concept of Mutual Funds
3. Indian Mutual Funds Market - An Overview
4. India - An Emerging Investment Destination
4.1 Economic Stability
4.2 Rapid Urbanization
4.3 High Saving Tendency
4.4 High Profitability
4.5 Bullish Stock Market
4.6 Income Level
4.7 Household Investment
4.8 Market Penetration
4.9 Consumer Interest
4.10 Risk Level & Return Potential
4.11 Government Initiatives
5. Market Performance
5.1 By Nature of Funds
5.1.1 Debt
5.1.2 Equity
5.2 By Investment Objectives
5.2.1 Income Schemes
5.2.2 Growth Schemes
5.2.3 Balanced Schemes
5.2.4 Liquid/Money Market Schemes
5.2.5 Gilt Schemes
5.2.6 ELSS Schemes
5.2.7 ETFs
5.3 By Types of AMCs
5.3.1 Bank Sponsored
5.3.2 Institutions
5.3.3 Private Sector
5.4 By Types of Investors
5.4.1 Individual
5.4.2 Institutional
5.4.3 Others
5.5 By Distribution Networks
5.5.1 Banks
5.5.2 IFAs
5.5.3 Others
5.6 By Geographical Distribution
6. Future Outlook
7. New Growth Avenues
7.1 Real Estate Mutual Funds

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7.2 Tier II & III Cities

7.3 Personal Savings
7.4 Online Marketing
7.5 Mutual Fund Intermediaries
7.6 Business & Knowledge Outsourcing
7.7 Advertising Media
8. Growth Barriers
8.1 Awareness Level
8.2 Compulsion of PAN Cards
8.3 Real Estate Market
8.4 Evolution of ULIPs
8.5 Employee Attrition
9. Key Players
9.1 Reliance Capital
9.2 UTI
9.3 BOB
9.4 ICICI Prudential
9.5 HDFC

List of Tables

Table 4-1: India - SENSEX Journey from 1000 to 21000 Points

Table 5-1: India - Top Ten Mutual Fund Schemes by Returns (%), July 2008
Table 5-2: India - Individual Mutual Fund Investor Accounts & Net Assets (2007-08)
Table 5-3: India - Institutional* Mutual Fund Investor Accounts & Net Assets (2007-08)
Table 5-4: India - NRI Mutual Fund Investor Accounts & Net Assets (2007-08)
Table 5-5: India - FII Mutual Fund Investor Accounts & Net Assets (2007-08)
Table 7-1: India - Domestic Savings by Sector (in Crore Rs), 1991-92 to 2006-07*
Table 7-2: India - Revenue & Number of KPO Professionals under Banking, Securities & Insurance
Research (2006-07 & 2010-11F)
Table 9-1: ICICI Prudential - Key Financial Indicators (May 1998 & Jun 2008)
Table 9-2: HDFC - Key Financial Indicators (Apr 2008)

List of Charts

Figure 3-1: India - Growth in Mutual Fund Assets by Phase (in Crore Rs), Mar 1965 to Mar 2008
Figure 4-1: India - Nominal GDP (in Billion US$), 2002-2007
Figure 4-2: India - Forecast for Nominal GDP (in Billion US$), 2008-2012
Figure 4-3: India - Rural & Urban Population Split (%), 2005 & 2030F
Figure 4-4: India - Share of Household Savings in Gross National Savings w.r.t. Other Countries (%), 2005
Figure 4-5: India - Mutual Funds Operating Profit in Average AUM w.r.t. UK & US (in bps), Mar 2007
Figure 4-6: India - Stock Performance of SENSEX & NIFTY (Mar 2006 to Jan 2008)
Figure 4-7: India - Institutional Investment in Stock Market (in Crore Rs), Mar 2006 to Nov 2007
Figure 4-8: India - Per Head Disposable Income (in US$), 2002-2007
Figure 4-9: India - Forecast for Per Head Disposable Income (in US$), 2008-2012
Figure 4-10: India - Share of Mutual Fund Assets in GDP w.r.t. Other Countries (%), 2007*
Figure 4-11: India - Comparative Risk & Return Matrix of Various Investment Instruments
Figure 5-1: India - Mutual Fund Assets (in ‘000 Crore Rs), 2004-05 to 2007-08
Figure 5-2: India - Gross Sales of Debt Mutual Funds (in ‘000 Crore Rs), 2002-03 to 2006-07
Figure 5-3: India - Gross Redemptions from Debt Mutual Funds (in ‘000 Crore Rs), 2002-03 to 2006-07

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Figure 5-4: India - Gross Sales of Equity Mutual Funds (in ‘000 Crore Rs), 2002-03 to 2006-07

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Category Business
Tags Indian, mutual, fund, industry
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