Assets managed by mutual fund distributors to rise four times in next five years

Mumbai: Assets Under Management (AUM) of mutual fund distributors could become three times from the current Rs 8 lakh crore (US$ 127 billion) to Rs 23 lakh crore (US$ 368 billion) by 2020 - indicating  a compounded annual growth rate of over 20 per cent, according to a research report by CRISIL Research and Financial Intermediaries Association of India (FIAI). The increase would most likely be on account of equity funds due to strong demand of equities by retail as well as high net-worth investors. Likewise, the life insurance distribution premium is expected to increase three times from the current Rs 3 lakh crore (US$ 47.61 billion) to nearly Rs 9 lakh crore (US$ 142.85 billion), whereas the non-life insurance distribution premium is expected to increase from the current Rs 0.5 lakh crore (US$ 7.93 billion) to Rs 1.31 lakh crore (US$ 20.79 billion).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.