KPMG sees India’s MF assets tripling by 2015

KPMG sees India’s MF assets tripling by 2015
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First Published: Wed, Jun 17 2009. 05 50 PM IST
Updated: Wed, Jun 17 2009. 05 50 PM IST
Mumbai: Assets of Indian mutual fund industry could triple to nearly Rs18 trillion by 2015 if country’s economy revived quickly, consultant KPMG said in a report on Wednesday.
However, profitability may come down as revenues shrink and operating costs mount, it said.
Indian fund industry profitability as a percentage of assets stood at 14 basis points in FY08, down from 25 basis points two years earlier, as the industry gathered more assets in low margin products targeted at institutional segment, KPMG estimates.
Corporates, banks and foreign institutional investors (FIIs) collectively control more than half of the Rs6.6 trillion Indian funds managed at the end of May, data compiled by the Association of Mutual Funds in India (AMFI) show.
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First Published: Wed, Jun 17 2009. 05 50 PM IST
More Topics: Mutual Fund | MF | Assets | KPMG | Economy |