Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Against the grain: Which emerging market’s fund industry grew 50% in a year?

To visit the MarketEye website please click here.

Historically, some 30% of Indian GDP has been in savings – typically gold and property – but demonetisation in November 2016 and the Aadhaar scheme are, together, encouraging these savings into the financial system. Moreover, this environment of plentiful liquidity is driving down funding costs for lenders and spurring the fees of businesses related to asset management.

Around 60,000 mutual fund accounts are being opened every day in India, and Indian mutual funds have almost doubled their assets under management (AUM) in just over three years.

The Indian mutual funds market has gone through three distinct phases over the past 13 years, with compound annual growth rates (CAGR) improving markedly over the past three years, on the back of higher market returns and stronger flows following demonetisation last November.

Given that the penetration of mutual funds in India as a proportion of GDP is less than a quarter of the global average, and below that of many other emerging markets, we believe there is a long ‘runway’ for growth in this area.

Sophia Whitbread – portfolio manager on the Newton Emerging and Asian Equities team. Newton, a BNY Mellon company.

This content is provided by Market Eye, BNY Mellon’s blog. You can register to receive Market Eye updates by using the subscribe function below.

DISCLAIMER:

Past performance is not a guide to future performance.

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds.

For Professional Clients and, in Switzerland, for Qualified Investors only.

Any views and opinions are those of the author, unless otherwise noted and is not investment advice.

BNY Mellon take no responsibility, nor endorse any comments from third-parties which contain links to external websites outside of those of BNY Mellon.

Furthermore, this material does not constitute an offer or invitation to anyone in any jurisdiction to invest in any BNY Mellon product or use any BNY Mellon services where such offer or invitation is not lawful, or in which the person making such offer or invitation is not qualified to do so, nor has it been prepared in connection with any such offer or invitation.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries.

This information has been prepared and approved by BNY Mellon Investment Management EMEA Limited. Issued in UK and Europe (excluding Switzerland) by BNY Mellon Investment Management EMEA Limited, BNY ellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Conduct Authority.  Issued in Switzerland by BNY Mellon Investments Switzerland GmbH, Talacker 29, CH-8001 Zürich, Switzerland. Authorised and regulated by the FINMA.

All information contained in this material is current at the time of issue and, to the best of our knowledge, accurate.

© 2017. BNY Mellon Investment Management EMEA Limited. All rights reserved.

This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from BNY Mellon. It is delivered on an “as is” basis without warranty. Click here for the full terms and conditions of use. BNY Mellon is committed to collect and store your details in a responsible way.  For details on our data collection and privacy policy, please refer to Privacy Policy. WEB00791

This article was provided by BNY Mellon Investment Management and does not necessarily reflect the views of Citywire

Your Business: Cover Star Club

Profile: UBS' robo boss on what his tween can teach the industry

Profile: UBS' robo boss on what his tween can teach the industry

Co-head of UBS SmartWealth Shane Williams explains the simple life lessons missed by the first wave of robo pioneers

Wealth Manager on Twitter