npavan78
19-07-2008, 08:40 AM
The assets under management (AUM) of mutual funds in India, which stood at 8 per cent of the GDP, has significant potential to go up to 20, owing to a slew of opportunities, a top ICICI Group executive said on Friday.
AUM of mutual funds could account for 20 per cent of GDP over the next five years, Kalpana Morparia, Vice-Chairperson, Insurance, Securities and Asset Management of ICICI Group, told reporters amid celebrations on completing 10 years of ICICI Prudential Asset Management Company.
She said institutional fund management space itself is a USD 100-billion opportunity where pension and provident funds would appoint managers to manage their huge funds.
Besides, there is lot of business expected from India dedicated funds while in the domestic market, there is large opportunity due to lower penetration of the industry as currently top eight cities account for 90 per cent of AUM.
She said the investment made by ICICI in the mutual fund business has generated a huge value. She recalled the private bank had invested only Rs 18 crore 10 years ago in the asset management company (AMC), which currently manages funds worth about Rs 60,000 crore.
Maintaining that the bank does not have any plans to sell this business, she said going by the current market valuations, hypothetically, there is a potential value of over Rs 5,000 crore in the AMC.
Mark Tucker, Group Chief Executive, Prudential PLC, said the AMC has consistently outperformed and expects equally impressive performance in future. "We have grown organically and that is how we will grow."
AUM of mutual funds could account for 20 per cent of GDP over the next five years, Kalpana Morparia, Vice-Chairperson, Insurance, Securities and Asset Management of ICICI Group, told reporters amid celebrations on completing 10 years of ICICI Prudential Asset Management Company.
She said institutional fund management space itself is a USD 100-billion opportunity where pension and provident funds would appoint managers to manage their huge funds.
Besides, there is lot of business expected from India dedicated funds while in the domestic market, there is large opportunity due to lower penetration of the industry as currently top eight cities account for 90 per cent of AUM.
She said the investment made by ICICI in the mutual fund business has generated a huge value. She recalled the private bank had invested only Rs 18 crore 10 years ago in the asset management company (AMC), which currently manages funds worth about Rs 60,000 crore.
Maintaining that the bank does not have any plans to sell this business, she said going by the current market valuations, hypothetically, there is a potential value of over Rs 5,000 crore in the AMC.
Mark Tucker, Group Chief Executive, Prudential PLC, said the AMC has consistently outperformed and expects equally impressive performance in future. "We have grown organically and that is how we will grow."