I was just searching for some numbers to give me an Indication about the depth of investing activity in India. Does anyone have a number as to what percentage is the total Indian MF AUM as compared to the total bank deposits, will give an Idea about the unfulfilled potential.
What percentage is the total Indian mutual funds AUM compared to the total bank deposits?
There you go, some interesting data I had access to.
|INDIA ( Rs Crs)||Sep - 17||Sep - 14||Sep - 12|
|Bank deposits (All)||114,52,000||86,87,410||67,49,540|
|MF AUM as % of Bank deposits||18.30%||11.00%||10.70%|
|USA (Rs Crs)|
|US Bank deposits (ALL)||772,20,000||671,45,000||581,10,000|
|US MF AUM||1159,60,000||1030,25,000||848,25,000|
|MF AUM as % of Bank deposits||150.20%||153.40%||146.00%|
Source: ICI.org, Federal reserver bank of St louis, RBI
As you can see as of Sep 2017, Bank deposits in the US is around 7 times more than India. MF AUM is a whopping 60 times more. The most interesting data point being that MF AUM as % of bank deposits is 150% in the US and only 18.3% in India. Reason why so many businesses are bullish about the mutual fund business in India. Eventually the % number in India has to catch up to the developed markets like the US.
This is awesome. Thanks Nithin.
Considering the savings in MF’s are more riskier than traditional Indian methods of savings in FD’s, Gold etc
What is the logic for the Indian Government to encourage individual saving diversion towards Mutual Funds ?
The government has been actively promoting individual MF participation through television ads etc etc
Any comments on this ?
If you look at countries around the world, the ones who have done really well historically (other than those countries which hit natural resources lottery - Oil in gulf, etc) are those where citizens backed their local businesses. A country can’t grow if the people in the country are holding up money in FD and Gold. If a portion of this money goes into funding businesses either directly or indirectly, they can in turn create jobs and help the economy grow.
It makes sense now. Thanks for the input.
Thank you so much for providing these Data
Two more data points
Also see www.sebi.gov.in/sebi_data/attachdocs/1491452612271.pdf
This is an annual survey conducted by SEBI using Nielsen market research to see how people invest.