Indian MF growth by 2015

Et 21-12-2006

Managed assets in India will exceed more than $1 trillion by 2015 says the global asset management 2006 report from Boston Consulting Group. This means an annual growth rate of 21% for the next nine years. The categories include, domestic MFs, pension funds, and international funds investing in India.

Indian mutual funds currently currently hold $70 billion in assets and this figure will grow to around $420-520 billion by 2015.

Assets under management(AUM) as a percentage of GDP work out to only 8% currently in India as compared to 26% in Korea and 36% in Brazil. The figure for USA works out to 70%.

In 1982, US households had 67% of their assets into cash and bank deposits, but by 2002, the same fell to 44% as managed assets moved up from 22.8% to 42.5%.

With Chidambaram and the congress government making bank deposits unattractive relative to mf units, BCG report predicts that India is expected to follow the US route.

NTN Insurance

Et 22 Dec 2006 page 14

The share of insurance premium in GDP has risen to 3.13% in India in 2005 and the global average during that period is 7.52%. This means that India's share in world insurance premium is 0.73%.

In another news report it is mentioned that India's market share in world life insurance market will increase from 0.9% in 2004 to 14.7% in 2050. Similarly, its share in property and casualty insurance market will rise from 0.3% in 2004 to 13.3% in 2050. The share of US and Japan will come down during that period. That is why many insurance companies want to open companies in India. These estimates are credited to HSBC and Swiss Re Economic Research and consulting.