Madhu Nair, CEO of Union Mutual Fund, has a bullish view on the investment landscape. That’s why he believes that the assets of mutual fund industry could touch Rs 140-200 lakh crore in 7-10 years. He feels money flows into equities and bonds in India will surprise over the next 10-15 years.
Over the past decade, the industry’s assets under management (AUM) have increased by 527% to Rs 61.16 lakh crore in June 2024 from Rs 9.75 lakh crore in June 2014.
In an interaction with Business Today, the money manager added that the next 10-15 years will be extremely positive for India. “People can generate inter-generational wealth going ahead. However, a lot of people will miss out because of a lack of discipline. If the power of compounding is the 8th wonder then I think the power of forgetting (buy and hold for long-term) is the 9th in the financial world.”
Nair added that there is a need to increase mutual fund distributors in the country. He said that at present, there are around 40,000 active mutual fund distributors in the country.
“You cannot avoid India, if the country will become the third largest economy in 5 years. India will be treated as an asset class in 15 years,” Nair said adding Union Mutual Fund is also mulling to launch portfolio management services (PMS), alternate investment fund (AIF) and offshore business.
On August 12, Union Mutual Fund announced the launch of the new fund offer (NFO) for Union Multi Asset Allocation Fund. The NFO will open for subscription on August 20, 2024, and close on September 3, 2024. The scheme will re-open for continuous sale and repurchase within five business days of the allotment date.
“As we prepare to launch the Union Multi Asset Allocation Fund, we aim to provide diversified investment solutions that empower our investors to achieve their financial goals, in this dynamic market environment,” said Nair. Union Mutual Fund had a total AUM of Rs 16,111.46 crore as of June 30.
Of late, Union Mutual Fund announced a substantial 75% increase in AUM in Delhi over the past year. “This achievement reflects not just our robust investment strategies but also the strong belief our clients have in the long-term potential of the Indian markets,” said Nair during a press meeting held in Delhi last week.