Why Is MF Penetration Still Low In India | Navneet Munot Interview

India’s mutual fund industry has witnessed tremendous growth over the past decade, with assets under management and investor participation reaching record highs. Yet, despite this progress, mutual fund penetration in India continues to remain below 5%, a figure far lower than in developed economies. In conversation with Riddhima Bhatnagar of Business Today  Navneet Munot, Chairman of AMFI and MD & CEO of HDFC Mutual Fund, explains why “Mutual Fund Zaruri Hai” is the next logical step after the hugely successful “Mutual Fund Sahi Hai” campaign. He sheds light on the challenges that still hold back deeper retail participation, ranging from lack of awareness and financial literacy to investor hesitation in volatile markets. Munot discusses how the industry. He also addresses SEBI’s caution on micro-cap investments, the importance of focusing on risk-adjusted returns, and the measures AMCs are taking to protect new investors from fraud and misinformation. Importantly, he highlights the role of smaller SIPs , some as low as ₹200 per month in making investing accessible to first-time and women investors across Tier-2 and Tier-3 cities.