Expect mutual fund industry AUM to cross Rs 100 lakh crore: SBI MF Deputy MD
In response to the question by Anshuman Tiwari, Editor of Money9, as to why people in India invest more in crypto or lottery than mutual funds, SBI Deputy MD D.P. Singh said that the reason is the lack of financial literacy.
In the first session of the Financial Freedom Summit titled “When will the next Rs 50 lakh crore come?” D.P. Singh, Deputy Managing Director of SBI Mutual Funds, said that the Asset Under Management (AUM) of mutual funds in India is currently 50 lakh crores. This journey of such a large amount has been quite remarkable. Apart from our hard work, the efforts of the market and the growth of the country have contributed to it. Mutual funds are an excellent instrument in the stock market. I am hopeful that the journey from 50 lakh crores to 100 crores will be completed soon. Considering the growth, the AUM of mutual funds should reach 100 crores by 2030. Financial freedom means having clarity in mind about my goal. The biggest dilemma is what my goal is. If I want to invest money, freedom means everything should be easily available to me, and I can invest immediately. The Money9 app is a significant step towards this financial freedom.
Why do people invest more in crypto or lottery than mutual funds?
In response to the question by Anshuman Tiwari, editor of Money9, as to why people in India invest more in crypto or lottery than mutual funds, Mr. D.P. Singh said that the reason is the lack of financial literacy. People take risks; there is a lack of financial education. There are many apps, including yours, that are changing this. They are educating people. Now, even people in villages are beginning to understand this. The knowledge people in Mumbai have, people living in smaller cities also have. The coming five years will be different from the last five years. Jan-Nivesh will come in 2024.
Changes in SIP?
In response to Anshuman Tiwari’s question about whether there can be any changes in SIPs of less than Rs 500, Mr. D.P. Singh, Deputy Managing Director of SBI Mutual Funds, said that the cost of managing SIPs of less than 500 rupees is the same as managing SIPs of Rs 5,000. The cost of managing SIP is Rs 35 . The goal is to reduce it. People are not willing to provide service to the low-income group. Work is being done on this. This will help increase the penetration of SIPs ranging from Rs 250 to Rs 500.