AMFI’s Vision for Mutual Funds Growth in India by 2047

AMFI’s vision projects Indian mutual fund AUM surpassing GDP by 2047, with retail participation expanding. Key initiatives focus on financial literacy, digital access, and rural investor inclusion.

The Association of Mutual Funds in India (AMFI) has outlined an ambitious roadmap for the mutual fund sector in its vision document, The Mutual Funds Route to Viksit Bharat @2047. The report, prepared by PwC, predicts that by 2047, the Indian mutual fund industry will surpass the country's GDP.

Growth Projections for the Indian Mutual Fund Industry

The report estimates that India’s GDP, currently at Rs 279 lakh crore (2024), is set to grow to Rs 2,492 lakh crore by 2047. In parallel, the Assets Under Management (AUM) of the mutual fund industry is expected to expand from Rs 53.4 lakh crore in 2024 to Rs 2,791 lakh crore by 2047. The industry’s contribution to GDP, which currently stands at 19 per cent, is projected to rise to 112 per cent over the next two decades.

Additionally, the number of retail investors participating in mutual funds is expected to surge from 4.5 crore in 2024 to 26.3 crore by 2047. The number of mutual fund distributors and Registered Investment Advisors (RIAs) is also likely to increase from 2.07 lakh to 9.95 lakh during the same period. Furthermore, the total number of mutual fund companies in India is anticipated to grow to 212 by 2047.

Key Highlights from the Report

• Retail AUM is projected to rise from Rs 34 lakh crore (2024) to Rs 1,954 lakh crore (2047).
• Institutional AUM is expected to touch Rs 837 lakh crore by 2047.
• Mutual fund penetration in India, currently at 3 per cent, is forecasted to increase to 15 per cent.

AMFI’s Initiatives to Boost Mutual Fund Accessibility

In alignment with the Viksit Bharat 2047 vision, AMFI has introduced various programs to improve financial awareness and accessibility to mutual funds.

Farm to Financial Freedom Initiative

This program focuses on integrating rural communities, including dairy farmers, into the formal financial system. It promotes mutual fund investments by providing financial education in regional languages, improving digital access, and creating awareness about investor-friendly solutions.

The Sahi Journey – Empowering Retail Investors

To encourage retail participation, AMFI is enhancing financial literacy and simplifying investment processes. With 90 per cent of mutual fund transactions now being digital, the initiative leverages AI-driven personalized investment experiences, regional outreach strategies, and vernacular investor education to extend its reach beyond metropolitan areas into Tier 2, Tier 3, and rural markets.

By implementing these initiatives, AMFI aims to foster financial inclusion and ensure broader participation in India’s evolving investment landscape.

Disclaimer: The article is for informational purposes only and not investment advice.