Birla Sun Life MF sees potential in North-East market post demonetisation

With demonetisation fuelling growth in the mutual fund industry in India, asset management company– Birla Sun Life– is eyeing to make big gains in the north-eastern market. The company, which is growing at a rate of around 13 per cent in Assam, is targeting to increase its Asset Under Management (AUM) size in the region.  

According to the company, more money has been pumped into the banking system owing to demonetisation, thereby, allowing  Birla Sun Life to increase its outreach programmes aimed at spreading awareness about mutual funds investments among its north-eastern customers. 

“Demonetisation has come as an opportunity for us to tap the north-eastern market further. We have lined up a slew of outreach programmes to create awareness among customers to invest in mutual funds,” said A Balasubramanian, Chief Executive Officer (CEO) of Birla Sun Life Asset Management Company.

According to Balasubramanian, the mutual fund industry has been witnessing growth in its transaction volume across the nation after demonetisation. The industry has also been witnessing increased investments in fixed income schemes. 

Birla Sun Life has seen an inflow of around Rs. 5,000 crore since November 8, which according to the company is higher by around 10-15 per cent than its usual transaction. 

Consumption-led growth and increased government spending on infrastructure projects would be the driving force behind the growth of India's mutual fund industry in the coming days, said Balasubramanian.