The Confederation of Indian Industry (CII) in association with its Knowledge Partner, McKinsey & Company released a report titled ‘Riding the wave of opportunity and optimism India’ against the backdrop of the 11th CII Mutual Fund Summit 2015 organized by CII on 30 June, 2015 at Mumbai.
The Indian asset management industry has witnessed notable growth despite discontinuities in the recent years. The current initiatives undertaken by the government and regulatory bodies indicate a GDP growth rate between 6.5 to 8 per cent could be attained over the next decade. The asset management industry can only benefit from this and needs to ensure that it capitalizes on this momentum. However, several challenges need to be resolved e.g., low consumer awareness and trust, distribution restricted to top few centres and limited innovation in products.
Against this backdrop, the report attempts to identify new areas of growth in terms of products and markets. Upcoming trends in the industry globally are examined to derive directional cues on where the sector might be heading. It is brought out that customer service and the use of technology could play a critical role in the expansion of the industry. With the increased use of digital services across industries, the asset management industry could also explore how it can benefit from this. The Mutual Funds industry globally has innovated significantly on products and some of those innovations and learnings can be adopted in India. Deeper penetration of mutual fund products and services could also help unlock the potential of the growing Indian opportunity. This could be done through engaging smaller towns and middle-class families across the country.