Macquarie sees long runway for growth for Indian MF industry

AUM-to-GDP ratio still at just 15%, compared with global average of 75%

The Indian mutual fund (MF) industry still has a long runway for growth despite seeing its assets rise by fivefold in the past decade, almost twice the growth clocked by bank deposits.

The overall number of MF folios has increased from 40 million in 2014 to nearly 100 million. Yet, the potential for growth remains large. To put things in perspective, the banking system has more than 2 billion deposit accounts, implying that the MF industry is just 5 per cent of the banking system. The mutual fund assets under management (AUM)-to-GDP ratio in India is at 15 per cent versus