Addressing the shareholders of the corporate, Parekh stated that the mutual fund business total property underneath administration rose by 41 per cent 12 months on 12 months to shut at Rs 31.4 lakh crore.
Over the past 5 years, mutual fund business AUM has seen a CAGR of 20.6 per cent and equity-oriented AUM has grown at a CAGR of 25 per cent.
“Regardless of the excessive development, India’s mutual fund AUM to GDP ratio stays considerably low at 15 per cent, as in comparison with a worldwide common of 75 per cent. Equally, fairness AUM to market cap stood at 5 per cent as towards a worldwide common of 30 per cent,” he stated.
Parekh was of the view that India’s penetration ranges by any measure stay significantly decrease in comparison with different giant economies.
India has greater than 50 crore earnings tax everlasting account numbers, however solely 2.2 crore mutual fund traders, he stated.
The Indian mutual fund business has the potential to develop exponentially, he stated.
“SEBI has executed a commendable job not solely by way of regulating the business but in addition aiding development. International businesses admire India’s mutual fund regulatory framework and take into account the mutual fund business among the many prime by way of international finest practices.”
“I hope we will capitalise on this and make our home mutual funds accessible to worldwide traders,” Parekh added.