Mutual fund penetration in India among lowest, shows Jefferies report

The domestic mutual funds industry has come a long way with current assets under management (AUM) topping Rs 30 trillion. However, global brokerage firm Jefferies believes it still has tremendous growth potential as it has barely scratched the surface when it comes to AUM growth. An analysis done by Jefferies shows India’s MF AUM as a percentage of GDP at 12 per cent is among the lowest and a fraction of global average of 63 per cent. Smaller emerging market peers, such as Brazil (ratio of 68 per cent) and South Africa (48 per cent), boast of better penetration. The