ITI Mutual Fund Aiming AUM of ₹1 Trillion in Upcoming 5 Years

ITI Mutual Fund is ambitiously targeting an AUM of ₹1 trillion within the next 5 years. The fund manager attributes this optimistic outlook to the increasing popularity of mutual funds among Indian investors, particularly through systematic investment plans (SIPs).

ITI MF’s AUM has experienced substantial growth, surging nearly 2.4 times to ₹8,791 crore in July 2024 from ₹3,698 crore in March 2023. This growth trajectory is indicative of the rising interest in mutual fund investments.

Mayukh Datta, the chief business officer of ITI AMC, highlighted the significant potential for growth in the mutual fund industry. He noted that currently, only 4.80 crore unique PAN investors are invested in mutual funds, while there are 74.67 crore PAN card holders in India. This suggests a vast untapped market for mutual fund investments.

Furthermore, Datta emphasised the favourable economic climate in India, which presents a unique opportunity for mutual funds to thrive. With the country’s anticipated growth rate surpassing many global economies, ITI AMC is confident in its ability to capitalise on this positive environment and achieve its ambitious AUM target.

Regarding the capital market, Datta explained that index valuations are influenced by the individual valuations of underlying stocks and their respective weightages. He emphasised that index valuations should be viewed as guiding factors rather than limiting factors. Active fund managers have the flexibility to invest beyond the index, exploring opportunities in different market cap segments based on their investment views and perceived growth potential.

Datta also highlighted the disparity between India’s ranking in global GDP and the ranking of its top companies within their respective industries. He suggested that this disparity presents an attractive investment opportunity for investors seeking to capitalise on leading Indian companies with the potential to expand on a global scale.

ITI AMC, established in 2019, has been steadily growing its asset base. As of July 2024, the fund manager manages 17 schemes with a total AUM of ₹8,791 crore, of which ₹8,303 crore is invested in equity.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.