MF Industry to grow by 25 p.c.

NEW DELHI, SEPT. 2. Despite the US-64 imbroglio, the Association of Mutual Funds in India (AMFI) is optimistic that capital market would pick up in the third quarter and mutual funds industry is likely to grow by 20-25 per cent to about Rs. 1,25,000 crores by July 2002.

"Markets have bottomed out. By October-November, markets should revive if economy starts performing better. Mutual funds industry will maintain a growth of 20-25 per cent this fiscal," AMFI Chairman, Mr. A. P. Kurian, told PTI.

He said the total asset under management by 400 odd mutual funds stood at Rs. 98,969 crores. in July 31, 2001, which is expected to go up to Rs. 1,25,000 crores by July 2002. "Mutual funds industry has performed better than most other industries offering a compounded annual growth rate (CAGR) of 22-23 per cent in the last five years and it still has a bright future," Mr. Kurian said.

He admitted that investors were more concentrated on debt and liquid schemes now rather than equity. "The Sensex fell 43 per cent from its peak levels of over 5,930 points in February 2000 to 3,287 now. This led to severe erosion in value of most active scrips that mutual funds had invested," Mr. Kurian said.

- PTI

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