Tailwinds are there in MF industry. I believe that, people should start taking benefit of slightly better GDP growth in India as compared to developed and other developing nations by regularly investing in Equity MF(s).
Also, Per capita GDP may need to grow at faster rate than 4-5%, as that will create additional surplus in the hands of investors so that they can invest rather than saving or investing only in real estates. There is massive potential in equity as compared to Real estate which need to be understood by large population which is away from equity.
With some of these triggers, AMC business should able to grow at decent rates for next 10-15 years, as per current visibility. There will be tough competition going ahead and AMC(s) need to innovate, use digital channels to promote investments, increase efficiency else they may see margins shrinking going forward.
All in all, this is an interesting sector to keep on your radar.
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