Team-BHP - McKinsey: Indian Asset Management Biz To Grow 3-Fold To $440 Billion By 2012

Asset management business will be a booming biz, if this study by McKinsey & Co is anything to go by. The global management consultant said that the total assets under management (AUM) in India would grow by 33 per cent every year to reach as much as $440 billion by 2012. These funds will be managed by mutual funds and portfolio management services companies.

It further said that the retail segment would grow by between 36 per cent and 42 per cent annually to $160 billion to $200 billion by 2012, while institutional investments would grow by 25 per cent to 33 per cent annually to $160 billion. Reuters quotes Naveen Tahilyani, a partner at McKinsey, as saying that “real estate mutual funds and dedicated infrastructure funds have the ability to significantly add to the industry growth”.

India currently has 33 fund houses, which managed $141.12 billion at the end of February, according to the Association of Mutual Funds in India.
Recently Stadard Chartered Bank Plc sold its mutual fund business to IDFC for $204 million, and it commanded a valuation of 5.6 per cent of the AUM

Source: India fund assets to reach $440 bln by 2012 - McKinsey | Reuters