Mutual fund penetration in India is dismally low


Australia USA Germany Brazil UK SouthAfrica India Global
136% 104% 59% 56% 54% 46% 10% 55%

Mutual funds compared as a % of net financial savings

Year FY12 FY13 FY14 FY15 FY16
Mutual Fund % of Net Financial Saving 1.32 1.12 1.8 1.53 2.94
Net Financial Saving % as household saving 31.1 32.9 36.5 36.1 41.5
Source: Reliance Nippon RHP

In spite of the record inflows into mutual funds, the penetration remains dismally low when compared against other developed peers. On the flipside, this goes to illustrate the vast untapped potential.

With bank deposits remaining the preferred choice of Indian households the future looks promising for mutual funds.

You can also do your bit by educating your friends and relatives about the benefits of mutual funds, especially direct.