The outlook of the mutual fund industry is governed by the economic situation in the country, which is predicted to kindle volatility due to the upcoming elections in 2014. The current economic scenario with sticky inflation and rising fuel prices is likely to adversely impact perceptions, resulting in depressed equity inflows into the market.
In this background the joint CII-PwC study attempts to capture some key perspectives of the mutual fund sector, it’s positioning as a dependable long-term investment vehicle and on ways in which an under-penetrated market can be addressed with low levels of investor awareness and financial literacy, along with constraints in accessibility and reach. The role of technology as an enabler for growth and some key regulatory developments that have taken place in the industry, both in India and overseas is also detailed.
The report was released in the ninth edition of the CII Mutual Fund Summit 2013 organised by CII on the theme “Indian Mutual Fund Industry: Unearthing the Growth Potential in Untapped Markets” held on 26 June at Mumbai.