I found few old articles on the co-relation between AUM and GDP.
It seems that, the MF industry is still under-penetrated in India. Though these files are dated, but it shows that, there are possibilities of good opportunities ahead of MF industry in India.
True potential of MF industry will be visible once the GDP growth comes back on track, and once we see massive jump in Per Capita GDP in next few decades. Substantial and serious efforts in this direction can improve the scenario for MF industry.
Some of the developing nations seem to be ahead in terms of Per Capita GDP and AUM / GDP ratio, and there seems to be room for growth in these 2 areas in Indian context.
Though most of these findings are known, I am researching this space to figure out the impact of sluggish GDP growth on MF industry.
Disclosure : Invested in HDFC AMC, but growth ahead looks low to moderate for the MF industry.
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