MF AUM to Surpass India’s GDP: Estimated Growth to ₹2791 Lakh Crore by 2047

The Association of Mutual Funds in India (AMFI) has unveiled its ambitious vision document, The Mutual Funds Route to Viksit Bharat @2047, outlining the expected growth trajectory of the Indian mutual fund industry. According to the report, the industry is projected to outpace India’s GDP by 2047, reflecting significant expansion in retail participation, assets under management (AUM), and financial inclusion.

Currently, the Indian GDP stands at ₹279 lakh crore (2024), with an estimated rise to ₹2492 lakh crore by 2047. Meanwhile, the mutual fund industry’s AUM is forecasted to skyrocket from ₹53.4 lakh crore (2024) to ₹2791 lakh crore, marking a substantial increase in its share of GDP from 19% to 112%.

Projected Growth in Investors and Distribution Network

The report highlights a significant surge in retail participation and distribution channels within the mutual fund ecosystem:

• The number of retail investors is set to grow from 4.50 crore in 2024 to 26.30 crore by 2047.
• The number of mutual fund distributors and registered investment advisors (RIAs) is expected to rise from 2.07 lakh to 9.95 lakh.
• The total number of mutual fund companies is projected to increase to 212 by 2047, expanding the competitive landscape of the industry.

Key Highlights from the AMFI Vision Document

Several crucial insights from the report reflect the industry’s expansion and increasing investor penetration:

• Retail AUM will grow from ₹34 lakh crore in 2024 to ₹1954 lakh crore by 2047.
• Institutional AUM is expected to reach ₹837 lakh crore by 2047.
• Mutual fund penetration in India will increase from the current 3% to 15% by 2047, indicating a broader financial inclusion strategy.

AMFI’s Initiatives Aligned with Viksit Bharat 2047

To support its vision of expanding the mutual fund ecosystem, AMFI has introduced several initiatives aimed at enhancing financial literacy, accessibility, and digital transformation.

Farm to Financial Freedom Initiative

This initiative is designed to integrate rural communities and dairy farmers into the formal financial ecosystem. By providing financial literacy in local languages, improving digital accessibility, and introducing investor-friendly mutual fund solutions, the programme seeks to bridge the financial divide between urban and rural India.

The Sahi Journey – Empowering Retail Investors

With the rapid digitalisation of financial transactions, AMFI is focused on simplifying investor journeys through AI-driven, personalised investment solutions. Presently, 90% of mutual fund transactions are conducted digitally. The Sahi Journey initiative aims to extend financial literacy through vernacular education, regional strategies, and targeted efforts to reach beyond metro cities into Tier 2, Tier 3, and rural markets.

Conclusion

AMFI’s vision document underscores the pivotal role mutual funds will play in India’s financial landscape by 2047. The projected growth in AUM, investor participation, and financial literacy initiatives is set to transform the industry, making it a significant contributor to the country’s economic development. With increasing digital adoption and investor-centric initiatives, the mutual fund industry is on a promising path toward greater inclusivity and expansion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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