ITI Mutual Fund looks to grow AUM 10x in 5 years; here’s how

ITI Mutual Fund on August 30 announced its bullish outlook on India’s economic prospects and outlined its ambitious growth plans. Mayukh Dutta, Chief Business Officer at ITI Mutual Fund, highlighted the country’s strong fundamentals and the immense potential for growth in the domestic equity markets.

“India’s position on the global economic map is truly advantageous,” stated Dutta, “Our nation’s anticipated growth rate surpasses that of many other countries, making it an attractive market for investors. We believe the Indian markets need to be seen in light of relative growth compared to the rest of the world, increasing corporate profitability, reducing corporate debt to GDP, and the tailwinds from government initiatives in manufacturing, Make in India, import substitution, merchandise exports, infrastructure, defence, railways, roads, connectivity and data centres.”

Datta further added that the growing demand for power, financial services, and premiumised consumption patterns, which are driving the Indian economy forward. “Overall, we are bullish on India and therefore expect equity markets to reflect this economic growth in the medium to long term,” he added.

Despite uncertainty surrounding US Fed interest rates, talks of recessions around the major economies and amongst prevailing geopolitical tensions, Datta expressed confidence in India’s ability to navigate these challenges and maintain its growth trajectory.

Reiterating company’s ambitious goal of achieving assets under management of Rs 1 lakh crore within the next five years, he said, “India’s economic growth trajectory offers a unique opportunity for mutual funds,” he said.

As of July 2024, ITI AMC manages 17 schemes with a total AUM of Rs 8,791 crore, of which Rs 8,303 crore is invested in equities. The company’s focus on equity investments aligns with its bullish outlook on the Indian equity markets. This means the money manager is aiming for over 10 times growth in its assets under management over the next five years.

Datta also highlighted the increasing financialisation of savings in India, correlating with the increasing number of people opting for systematic investment plans (SIPs) to invest in the capital markets. The mutual fund industry has witnessed a significant increase in the number of live SIP accounts, indicating growing investor confidence.

Highlighting the untapped potential in the mutual fund market, Datta added, “As of March 31, 2024, there are 746.7 million PAN holders in India. Of this, 605 million were Aadhaar-linked. This means that we are yet to have 10% of the investible population, i.e., PAN card holders, come to the mutual funds universe. There is still a significant runway for new investors to enter the mutual fund industry.”