ITI Mutual Fund Aims for Rs.1 Lakh Crore AUM Milestone in Five Years
ITI Mutual Fund eyes Rs.1 lakh crore of AUM in the next five years with the growing traction of mutual fund schemes, especially SIPs. ITI Mutual Fund AUM jumped to Rs.8,791 crore as of July 2024 from Rs.3,698 crore as of March 2023, nearly 2.4 times growth.
The mutual fund industry is fast expanding, with approximately 4.80 crore unique PAN investors and 9.34 crore active SIP accounts with Rs.13.09 lakh crore in AUM. And despite such numbers, still a lot of potential is lying underneath. At the end of March 31, 2024, out of 74.67 crore PAN holders, 60.5 crore were linked to Aadhaar, and it provides a huge pool of potential investors who have not yet tapped mutual fund investments.
This rapid economic growth in India brings a great doorway for the mutual fund industry to further expand. Going by projections of growth outstripping most economies worldwide, ITI Mutual Fund is just well-placed to leverage this environment. With hope in the economic prospects of the country, the fund house aspires to achieve its Rs.1 lakh crore AUM goal within the next five years.
The index valuations here act more like guiding factors than constraints on the capital market. Accordingly, investment by fund managers could be made in active schemes in varied market caps like large, mid, and small-cap funds, which would depend upon the view of the fund manager and the perceived growth potential of the stocks.
While India is ranked as the 5th power in the world based on GDP, most of its largest companies rank behind their global peers in their respective industries. However, the top 250 companies in India represent an attractive investment proposition with the potential to scale up and be globally competitive.
ITI Mutual Fund is an AMC that started operations in 2019 and managed 17 schemes with a total AUM of Rs.8,791 crore as of the end of July 2024, of which Rs.8,303 crore comprises equity AUM-the highest contributor within the portfolio of this fund house.
