According to the report on the equity mutual funds industry, the concentration of equity AUM in the top cities is fast diminishing. The share of AUM beyond the top ten cities increased rapidly from about 10% in March 2003 to about 26% in March 2010
Mumbai and Delhi together account for about 45% of the total equity mutual fund assets under management (AUM), the Boston Consulting Group (BCG) and Computer Age Management Systems' (CAMS) report on the equity mutual funds industry said, reports PTI.
India's mutual fund industry's average assets under management (AUM) is pegged at Rs8,05,239 crore in June 2010.
According to the report, the concentration of equity AUM in the top cities is fast diminishing. The share of AUM beyond the top ten cities increased rapidly from about 10% in March 2003 to about 26% in March 2010. Mumbai and Delhi together account for about 45% of total equity AUM, and the top 30 cities account for about 90% of total equity AUM, the report said.
"We believe that the Indian equity mutual funds industry is likely to continue growing rapidly for the next five to six years given many favourable factors such as
under-penetration, high economic growth rate, tax benefits such as equity-linked savings schemes, and enhanced presence in household savings products," the report said.
"The mutual fund AUM is expected to grow by 20%-30% over the next five-year period, as compared to 35% growth registered in last five years," BCG's partner & director, Alpesh Shah told reporters in Mumbai.
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