Brokerage revenues to triple over 10 yrs: report

It is boom time ahead for equity brokers and mutual fund houses. In the coming decade, mutual fund inflows are slated to grow nine fold to $65 billion (Rs 2,86,975 crore) and brokerages revenue are set to triple to $3.9 billion (Rs 17,218 crore).

"As India's demographic-led liquidity story develops, equity fund managers are likely to profit the most," stated a JM Morgan Stanley report.

While equity inflows could accumulate to $65 billion over 10 years, assets under management are predicted to grow at a compound annual rate of 21 per cent to $107 billion (Rs 472,405 crore), the report added.

The report has estimated brokerage commission to grow at a compound annual growth rate of 12 per cent, which could take the industry's revenues to $3.9 billion by 2015.

With the flows into equity markets headed north, the report forecasts that the share of household savings into equity to shoot up to 6.1 per cent of the gross financial savings from the 1.1 per cent at present.

Giving an indication of the growth in trading volumes in India, the report notes that India's trading volumes to gross domestic product (GDP) is just a decade behind the US even though the per capita GDP is trailing the US by over 70 years.