Mutual fund sector to grow at 30-35 percent in 3-5 years

By IANS,

Kolkata : The mutual fund sector will see a compounded annual growth rate of 30-35 percent in the next three to five years, an official said Monday.


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“The mutual fund sector will see a huge growth in the coming three to five years to the tune of 30 to 35 percent. This will happen due to easing of regulations on mutual funds,” Birla Sun Life Asset Management Company (BSLAMC) Chief Executive Officer Anil Kumar told reporters here.

He said the company grew at 89 percent last fiscal compared to an industry growth of 60 percent.

Kumar, who was present at the launch of his company’s first commodity fund, said BSLAMC grew at 14 percent in the first quarter of the current fiscal against an industry growth rate of six percent.

The company plans to almost double its offices to 200 by the end of this fiscal. Currently, BSLAMC has 110 offices in the country, he added.

Christened Birla Sun Life Commodity Equity Fund, the new product is an open-ended commodity equities fund meant to offer investors long-term capital growth by investing in securities of domestic and overseas commodity companies.

“We see commodities and investments to commodity equities as essential and not an alternate investment class. Commodity is the second largest asset class in terms of investments after foreign currency,” Kumar said. Investments to the commodity equity fund can be done in sectors like metals, agriculture and multi-commodities.

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