ITI Mutual Fund projects to reach Rs 1 trillion in assets under management in next five years
ITI AMC, which started operations in 2019, manages 17 schemes with total assets under management of Rs 8,791 crore as at the end of July 2024. | Representative Picture
ITI Mutual Fund aims to reach Rs 1 trillion in assets under management in the next five years as more people opt for mutual funds through systematic investment plans.
ITI MF’s assets under management (AUM) increased nearly 2.4 times, from Rs 3,698 crore in March 2023 to Rs 8,791 crore in July 2024.
Mayukh Datta, Chief Business Officer, AMC, said the mutual fund industry has around 4.80 crore unique PAN investors. It currently has 9.34 crore live SIP accounts with Rs 13.09 trillion in AUM.
He further said that as on March 31, 2024, there were 74.67 crore PAN holders in India, of which 60.5 crore PAN were Aadhaar linked.
“So, we are yet to get 10 per cent of the investable population, i.e. PAN card holders, and we are yet to get into the mutual fund universe. There is enough scope for new investors to enter the mutual fund industry,” Datta said while talking to PTI.
He further said that India continues to occupy a golden position on the global map with expected growth higher than most global economies, presenting huge opportunities for the mutual fund industry.
“India’s economic growth trajectory presents a unique opportunity for mutual funds. With the country’s expected growth rate outpacing many global economies, ITI AMC is poised to experience significant expansion. We aim to capitalise on this favourable environment. We aim to reach Rs 1 trillion AUM within the next five years,” Datta said.
On the capital market, he said that index valuations are determined by individual valuations of stocks in that index and the weighting of those stocks.
“So index valuations are leading factors and not limiting factors. Fund managers in active schemes do not buy the entire index and within market capitalisation funds like large, mid and small funds they have the option to invest in the other market capitalisations in the schemes depending on their view and perceived growth potential,” he said.
Datta said that while India ranks 5th in the global GDP rankings, many of the country’s largest companies and firms lag significantly behind the global rankings of companies in the same sector.
India’s top 250 companies present an attractive proposition for investors to invest in leading companies that can make the transition to global scale, he added.
ITI AMC, started in 2019, manages 17 schemes as at end-July 2024 with a total AUM of Rs 8,791 crore. The equity AUM is Rs 8,303 crore as at end-July 2024.
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First publication: Aug 29, 2024 | 9:23 PM IST