Mutual Fund industry largely under-penetrated in India, says Deepak Parekh

Despite high growth, India's MF AUM-to-gross domestic product ratio is a low 16 per cent, against the global average of 74 per cent, he said

The Rs 37-trillion domestic mutual fund (MF) industry has seen a sharp surge in assets under management (AUM) over the past two years. But HDFC Asset Management Company (AMC) Chairman Deepak Parekh believes India’s MF industry remains significantly under-penetrated.

“Despite a healthy compound annual growth rate of 16 per cent in AUM over the past five years, the MF industry in India remains significantly under-penetrated, compared to global averages,” he said, addressing the HDFC AMC’s 23rd annual general meeting.

Despite high growth, India’s MF AUM-to-gross domestic product ratio is a low 16 per cent, against the global average of 74