AMFI MUTUAL FUND SUMMIT 2018
Association of Mutual Funds in India (AMFI) held its annual Mutual Fund Summit in the financial capital of the country, Mumbai. Shri Ajay Tyagi, Chairman of SEBI, inaugurated the Summit and preside over as the Chief Guest of the Summit. The chief of country’s market regulator was talking to reporters at the sideline of AMFI Mutual Fund Summit 2018.
Shri Deepak Parekh, Chairman of HDFC Ltd., the Guest of Honour at the event while sharing his vision for the Indian mutual fund industry emphasised on important trends including doubling of AAUMs to INR 50 Lakh crore in the next five years.
Objective of the Summit:::
The core objective of the summit is to define the roadmap for the industry with key focus on customer expansion and ease of doing business by leveraging on digital technology. AMFI Mutual Fund Summit is aimed at channeling discussions about the industry’s strengths and opportunities, celebrating achievements over the past year and addressing challenges, for taking the industry to newer heights.
-With asset under management touching Rs. 24 trillion and retail assets under management crossing Rs.10 trillion, the Indian Mutual fund industry has been witnessing robust growth since the last few years and consistently crossing new milestones month after month.
- The customer base of mutual funds is growing at a healthy rate with nearly 7.59 crore folios in July 2018 , as against 5.99 crore folios in July 2017 an increase of around 27 % over one year
Some Issues and Challenges
-AUM concentrations by the top 7 MFs account for around 70 % of the industry AUM. So AMc’s only decide the trend.
-Mis selling of mutual funds by distributors or advisors for freebies like travel trips and monitory rewards.
-Individuals should be encouraged to invest directly if they can manage it on their own.
-The Summit will serve as a great platform to facilitate thought provoking discussions between industry stake holders including asset managers, distribution partners and the Regulator to overcome the challenges, leverage on digital technology and take learning from other industries to lay the foundation towards expanding the Mutual Fund industry
-AUM account for 11% of Indian GDP. Mutual fund industry in India has a lot of catching up to do and there are a lot of opportunities for growth.
-According to AMFI data, the AUM of equity schemes has doubled in the last two years. There has been a huge influx of new investors into the mutual fund fold after demonetisation. Sebi and AMFI through their campaigns are in process of minimizing miss-selling to the new investors.
This positive industry outlook is good for AMC stocks like HDFC AMC and Reliance AMC. We are recommending HDFC AMC stock since Ipo. Long term investors can hold this stock for long term wealth creation.
Inputs By Ms. Dipti Jog, SEBI Registered Research Analyst