The nascent mutual fund industry in India is poised for tremendous growth averaging 29% a year over the next five years,
Retail investors will drive sales, with this segment of the market growing at an annual rate of 35%, whereas the institutional segment will grow 25% a year, Celent said.
In the past five years, the annual compound annual growth rate of the industry has been 25%, Celent said. Nonetheless, profitability will remain at the same level as firms need to develop additional distribution channels and competition among mutual fund complexes heats up, Celent said.